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September AAII Asset Allocation Survey: Equity Allocations Rebound

Equity allocations among individual investors rebounded to a three-month high last month, according to the September AAII Asset Allocation Survey. Fixed-income allocations fell and cash allocations declined modestly.

Stock and stock fund allocations rose 1.9 percentage points to 68.7%. Equity allocations were last higher in June (68.8%). September was the 54th consecutive month that equity allocations were above their historical average of 60.5%.

Bond and bond fund allocations fell 2.2 percentage points to 15.1%. The historical average is 16.0%.

Cash allocations declined by 0.2 percentage points to 16.1%. September was the 70th consecutive month that cash allocations were below their historical average of 23.5%.

The change in allocations occurred as stocks rose last month, while rising yields pushed Treasury prices down. Optimism in our weekly survey also rose above its historical average for the first time since last February.

Even though individual investors list Washington politics and valuations as the primary factors influencing their outlook for stock prices, they don’t view bonds as being particularly attractive either. Many AAII members have previously described the ongoing low interest rate environment as causing them to invest in stocks over bonds. September’s increase in Treasury bond yields was likely not enough to alter individual investors’ perception of interest rates.

September AAII Asset Allocation Survey results:

  • Stocks and stock funds: 68.7%, up 1.9 percentage points
  • Bonds and bond funds: 15.1%, down 2.2 percentage points
  • Cash: 16.1%, up 0.2 percentage points

September AAII Asset Allocation Survey details:

  • Stocks: 30.2%, up 2.0 percentage points
  • Stock funds: 38.5%, unchanged
  • Bonds: 2.6%, down 0.9 percentage points
  • Bond funds: 12.5%, down 1.3

Historical Averages:

  • Stocks/Stock Funds: 60.5%
  • Bonds/Bond Funds: 16.0%
  • Cash: 23.5%

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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