February AAII Asset Allocation Survey: Fixed-Income Exposure Rises to a Six-Month High

Individual investors’ exposure to fixed income was at a six-month high last month according to the February Asset Allocation Survey. Cash allocations also rose while equity exposure declined. None of these asset classes saw significant changes.

Stock and stock fund allocations pulled back by 1.4 percentage points to 66.1%. Equity allocations remain above their historical average of 61.0% for the 83rd consecutive month.

Bond and bond fund allocations increased 0.4 percentage points to 19.1%. Fixed-income exposure was last higher in August 2019 (19.4%). Bond and bond fund allocations are above their historical average of 16.0% for the 12th consecutive month and the 13th time in 14 months.

Cash allocations rebounded by 1.0 percentage points to 14.8%. Cash allocations are below their historical average of 23.0% for the 99th consecutive month.

Many of the responses to the February survey were registered before last week’s drop in stock prices and bond yields. AAII members can participate in this survey at any point during a calendar month. Historically, we have seen individual investors take more time to alter their allocations than to change their expectations about the short-term direction of the stock market.

February AAII Asset Allocation Survey results:

• Stocks and stock funds: 66.1%, down 1.4 percentage points
• Bonds and bond funds: 19.1%, up 0.4 percentage points
• Cash: 14.8%, up 1.0 percentage points

February AAII Asset Allocation Survey details:

• Stocks: 28.7%, up 0.5 percentage points
• Stock funds: 37.5%, down 1.9 percentage points
• Bonds: 3.7%, up 0.4 percentage points
• Bond funds: 15.4%, up 0.1 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: 66.1%, down 1.4 percentage points
• Bonds and Bond Funds: 19.1%, up 0.4 percentage points
• Cash: 14.8%, up 1.0 percentage points

• Stocks: 28.7%, up 0.5 percentage points
• Stocks Funds: 37.5%, down 1.9 percentage points
• Bonds: 3.7%, up 0.4 percentage points
• Bond Funds: 15.4%, up 0.1 percentage points

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