November AAII Asset Allocation Survey: Bond Allocations Above Average

Individual investors’ allocation to fixed income increased and equities remained relatively flat in the November Asset Allocation Survey.

Stock and stock fund allocations increased 0.2 percentage points to 64.6%. Stock and stock fund allocations are above their historical average of 61.5% for the 42nd consecutive month.

Bond and bond fund allocations increased 0.5 percentage points to 16.4%. Bond and bond fund allocations are above their historical average of 16.0% for the first time in 33 months. Fixed-income allocations were last higher in January 2021 (17.0%).

Cash allocations decreased 0.7 percentage points to 19.0%. Cash allocations are below their historical average of 22.5% for the 12th consecutive month.

Optimism in the weekly AAII Sentiment Survey reached an unusually high level in November and pessimism decreased to its lowest level in almost six years.

• Stocks and Stock Funds: 64.6%, up 0.2 percentage points
• Bonds and Bond Funds: 16.4%, up 0.6 percentage points
• Cash: 19.0%, down 0.8 percentage points

• Stocks: 29.7%, up 0.2 percentage points
• Stocks Funds: 34.9%, up 0.1 percentage points
• Bonds: 5.8%, down 0.0 percentage points
• Bond Funds: 10.6%, up 0.6 percentage points

• Stocks/Stock Funds: 61.5%
• Bonds/Bond Funds: 16.0%
• Cash: 22.5%