June AAII Asset Allocation Survey: Stock Allocations Decline for a Second Month

Individual investors’ exposure to equity allocations declined for a second consecutive month. The June AAII Asset Allocation Survey also shows a pullback in fixed-income exposure and higher exposure to cash.

Stock and stock fund allocations declined 1.4 percentage points to 64.4%. Even with the decline, equity allocations remain above their historical average of 61.0% for the 75th consecutive month.

Bond and bond fund allocations pulled back by 0.5 percentage points to 18.4%. Fixed-income allocations are above their historical average of 16.0% for the fourth consecutive month and the fifth time in six months.

Cash allocations rose by 1.9 percentage points to 17.2%. Cash allocations remained below their historical average of 23.0% for the 91st consecutive month.

Allocations to all three asset classes are within the ranges we’ve seen throughout this year. Though the U.S. equity markets enjoyed a very good June, optimism among individual investors about the short-term direction of the stock market remains low in our weekly AAII Sentiment Survey.

June AAII Asset Allocation survey results:

• Stocks and stock funds: 64.4%, down 1.4 percentage points   
• Bonds and bond funds: 18.4%, down 0.5 percentage points  
• Cash: 17.2%, up 1.9 percentage points

June AAII Asset Allocation survey details:

• Stocks: 28.6%, down 1.4 percentage points
• Stock Funds: 35.9%, unchanged
• Bonds: 4.3%, up 0.7 percentage points
• Bond Funds: 14.1%, down 1.3 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