February AAII Asset Allocation Survey: Equity Allocations Rise


Exposure to equities among individual investors continued to rebound in February, reaching a four-month high. The February AAII Asset Allocation Survey also shows lower fixed-income and bond allocations.


Stock and stock fund allocations rose 4.1 percentage points to 67.3%. Equity allocations were last higher in October 2018 (69.5%). The increase keeps equity allocations above their historical average of 61.0% for the 71st consecutive month.


Bond and bond fund allocations pulled back by 0.8 percentage points to 15.8%. This is the 14th time in 15 months that fixed-income allocations are below their historical average of 16.0%.


Cash allocations declined by 3.4 percentage points to 16.9%. The drop keeps cash allocations below their historical average of 23.0% for the 87th consecutive month.


The rebound in the stock market helped to boost equity allocations. At the same time, optimism about the short-term direction of the stock market has improved among individual investors. Bullish sentiment in our weekly Sentiment Survey was above average during three of February’s four weeks.


February AAII Asset Allocation Survey results:

  • Stocks and stock funds: 67.3%, up 4.1 percentage points
  • Bonds and bond funds: 15.8%, down 0.8 percentage points
  • Cash: 16.9%, down 3.4 percentage points

February AAII Asset Allocation Survey details:

  • Stocks: 31.1%, up 2.0 percentage points
  • Stock Funds: 36.2%, up 2.1 percentage points
  • Bonds: 2.8%, down 0.7 percentage points
  • Bond Funds: 13.0%, down 0.1 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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