March AAII Asset Allocation Survey: Fixed-Income Allocations Rise to 16-Month High

Individual investors’ exposure to fixed-income rose to a 16-month high last month. The March AAII Asset Allocation Survey also showed a small increase in cash allocations and a decrease in exposure to equities.

Stock and stock fund allocations pulled back by 1.9 percentage points to 65.4%. Even with the decline, equity allocations remained above their historical average of 61.0% for the 72nd consecutive month.

Bond and bond fund allocations rose by 1.6 percentage points to 17.4%. Fixed-income allocations were last higher in November 2017 (17.6%). Bond and bond fund allocations were above their historical average of 16.0% for the second time in three months.

Cash allocations rose 0.4 percentage points to 17.3%. Cash allocations were below their historical average of 23.0% for the 88th consecutive month.

A pullback in yields increased the value of fixed-income holdings. At the same time, optimism about the short-term direction of the stock market was largely below the levels recorded in February, though still well within the typical historical ranges. Many AAII members follow a long-term approach to investing.

March AAII Asset Allocation Survey results:

• Stocks and stock funds: 65.4%, down 1.9 percentage points         
• Bonds and bond funds: 17.4%, up 1.6 percentage points
• Cash: 17.3%, up 0.4 percentage points

March AAII Asset Allocation Survey details:

• Stocks: 30.6%, down 0.5 percentage points
• Stock Funds: 34.8%, down 1.4 percentage points
• Bonds: 3.5%, up 0.7 percentage points
• Bond Funds: 13.8%, up 0.9 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.

• Stocks and Stock Funds: 65.4%, down 1.9 percentage points
• Bonds and Bond Funds: 17.4%, up 1.6 percentage points
• Cash: 17.3%, up 0.4 percentage points

• Stocks: 30.6%, down 0.5 percentage points
• Stocks Funds: 34.8%, down 1.4 percentage points
• Bonds: 3.5%, up 0.7 percentage points
• Bond Funds: 13.8%, up 0.9 percentage points

• Stocks/Stock Funds: 61.0%
• Bonds/Bond Funds: 16.0%
• Cash: 23.0%