July AAII Asset Allocation Survey: Equity Exposure Rebounds

Exposure to equities among individual investors rebounded last month. The July AAII Asset Allocation Survey also shows a decline in cash allocations.

Stock and stock fund allocations rose 2.1 percentage points to 66.5%. Even with the decline, equity allocations remain above their historical average of 61.0% for the 76th consecutive month.

Bond and bond fund allocations were unchanged at 18.4%. Fixed-income allocations are above their historical average of 16.0% for the fifth consecutive month and the sixth time in seven months.

Cash allocations declined by 2.1 percentage points to 15.1%. Cash allocations remain below their historical average of 23.0% for the 92nd consecutive month.

Higher prices for large-cap stocks helped to boost the value of individual investor’s equity holdings. There was an overall increase in the percentage of AAII members expecting the stock market to rise in July relative to June. Nonetheless, the level of optimism recorded by our weekly Sentiment Survey remained below average for most of last month.

July AAII Asset Allocation Survey results:

• Stocks and stock funds: 66.5%, up 2.1 percentage points
• Bonds and bond funds: 18.4%, no change             
• Cash: 15.1%, down 2.1 percentage points

July AAII Asset Allocation Survey details:

• Stocks: 28.8%, up 0.2 percentage points
• Stock funds: 37.7%, up 1.9 percentage points
• Bonds: 4.2%, down 0.2 percentage points
• Bond funds: 14.3%, up 0.2 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.

• Stocks and Stock Funds: 66.5%, up 2.1 percentage points
• Bonds and Bond Funds: 18.4%, up 0.0 percentage points
• Cash: 15.1%, down 2.1 percentage points

• Stocks: 28.8%, up 0.2 percentage points
• Stocks Funds: 37.7%, up 1.9 percentage points
• Bonds: 4.2%, down 0.2 percentage points
• Bond Funds: 14.3%, up 0.2 percentage points

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