August AAII Asset Allocation Survey: Six-Month High for Equity Exposure

The latest AAII Asset Allocation Survey shows individual investors’ exposure to equities reaching a six-month high in August. At the same time, cash allocations fell to their lowest level in six months.

Stock and stock fund allocations rose 2.6 percentage points to 64.8%. This is the largest equity allocation since February 2020 (66.1%). Allocations to stocks and stock funds are above the historical average of 61.0% for the 88th time out of the past 92 months.

Bond and bond fund allocations increased 1.0 percentage points to 18.9%. This is the 18th consecutive month and the 19th month since the start of 2019 that fixed-income exposure is above its historical average of 16.0%.

Cash allocations fell 3.6 percentage points to 16.3%. Cash exposure was last lower in February 2020 (14.8%). The historical average is 23.0%.

Individual investors’ exposure to equities rose last month as some of the major indexes set or neared their record highs. Optimism about the short-term direction of the stock market gradually rose throughout the month, though continued to remain below-average in the weekly AAII Sentiment Survey.

August AAII Asset Allocation Survey results:

• Stocks and Stock Funds: 64.8%, up 2.6 percentage points
• Bonds and Bond Funds: 18.9%, up 1.0 percentage points
• Cash: 16.3%, down 3.6 percentage points

August AAII Asset Allocation Survey details:

• Stocks: 28.4%, down 0.2 percentage points
• Stock Funds: 36.4%, up 2.8 percentage points
• Bonds: 3.0%, down 0.4 percentage points
• Bond Funds: 15.9%, down 1.4 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.