October AAII Asset Allocation Survey: 10-Year Low for Fixed-Income Exposure


Exposure among individual investors to fixed-income assets is at its lowest level in more than a decade. The October AAII Asset Allocation Survey also shows a drop in equity exposure and an increase in cash allocations.

Stock and stock fund allocations declined by 0.4 percentage points to 69.5%. October was the 67th consecutive month with equity allocations above their historical average of 61.0%.

Bond and bond fund allocations fell 0.9 percentage points to 13.3%. Fixed-income exposure was last lower in June 2008 (12.6%). Last month was also the 11th consecutive month with bond and bond fund allocations below their historical average of 16.0%.

Cash allocations rebounded by 1.3 percentage points to 17.2%. Cash allocations were last at this level in May 2017. Nonetheless, cash allocations remain below their historical average of 23.0% for the 83rd consecutive month.

Though bond yields have been rising, individual investors have now reduced their exposure to fixed-income assets for three consecutive months. The perception of yields remaining low on an absolute basis and expectations for a further decline in bond prices (and little upside) are causing many individual investors to eschew bonds or otherwise limit their exposure to them.

October AAII Asset Allocation Survey results:

  • Stocks and stock funds: 69.5%, down 0.4 percentage points
  • Bonds and bond funds: 13.3%, down 0.9 percentage points
  • Cash: 17.2%, up 1.3 percentage points

October AAII Asset Allocation Survey details:

  • Stocks: 32.2%, down 1.7 percentage points
  • Stock funds: 37.3%, up 1.3 percentage points
  • Bonds: 2.6%, down 0.1 percentage points
  • Bond funds: 10.7%, down 0.7 percentage points

Historical Averages:

  • Stocks/Stock Funds: 61.0%
  • Bonds/Bond Funds: 16.0%
  • Cash: 23.0%

*The numbers are rounded and may not add up to 100%.

The AAII Asset Allocation Survey has been conducted monthly since November 1987 and asks AAII members what percentage of their portfolios are allocated to stocks, stock funds, bonds, bond funds and cash. The survey and its results are available online at: www.aaii.com/investor-surveys.

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/assetallocationsurvey

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.


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