November AAII Asset Allocation Survey: Equity Allocations Reach a 7-Month High

Individual investors’ exposure to equity investments reached a seven-month high in November according to the latest AAII Asset Allocation Survey. Fixed-income exposure also rose, while cash allocations pulled back.

Stock and stock fund allocations rose 2.3 percentage points to 67.0%. Equity allocations were last higher in April 2019 (67.8%). The rise keeps stock and stock fund allocations above their historical average of 61.0% for the 80th consecutive month.

Bond and bond fund allocations rebounded by 0.4 percentage points to 18.7%. Fixed-income allocations are above their historical average of 16.0% for the ninth consecutive month and the 10th time in 11 months.

Cash allocations fell 2.7% percentage points to 14.3%. This is the smallest exposure to cash since January 2018 (13.3%). The drop also keeps cash allocations below their historical average of 23.0% for the 96th consecutive month.

New record highs for the major stock indexes helped to boost the value of individual investors’ equity holdings. At the same time, optimism about the short-term direction of stock prices was above its historical average on consecutive weeks in our weekly AAII Sentiment Survey during November for the first time since May 2019.

November AAII Asset Allocation Survey results:

• Stocks and stock funds: 67.0%, up 2.3 percentage points         
• Bonds and bond funds: 18.7%, up 0.4 percentage points         
• Cash: 14.3%, down 2.7 percentage points

November AAII Asset Allocation Survey details:

• Stocks: 27.9%, down 0.2 percentage points
• Stock funds: 39.1%, up 2.5 percentage points
• Bonds: 3.8%, down 0.3 percentage points
• Bond funds: 15.0%, up 0.7 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: 67.0%, up 2.2 percentage points
• Bonds and Bond Funds: 18.7%, up 0.5 percentage points
• Cash: 14.3%, down 2.7 percentage points

• Stocks: 27.9%, down 0.3 percentage points
• Stocks Funds: 39.1%, up 2.5 percentage points
• Bonds: 3.8%, down 0.3 percentage points
• Bond Funds: 15.0%, up 0.7 percentage points

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