March AAII Asset Allocation Survey: Lowest Equity Exposure Since 2011

Individual investors’ exposure to equities plunged to the lowest level since late 2011. The March AAII Asset Allocation Survey also shows cash holdings jumping to their highest level in more than a decade.

Stock and stock fund allocations fell 10.9 percentage points to 55.2%. This is the smallest exposure to equities since November 2011 (53.1%). Last month’s drop ended a streak of 83 consecutive months with stock and stock fund allocations above their historical average of 61.0%.

Bond and bond fund allocations declined 0.4 percentage points to 18.7%. Fixed-income allocations are above their historical average of 16.0% for the 13th consecutive month and the 14th time in 15 months.

Cash allocations surged 11.3 percentage points to 26.1%. Cash allocations were last higher in November 2009 (27.1%). The big increase ends a streak of 99 consecutive months with cash allocations below their historical average of 23.0%.

The big shifts in allocation occurred as the 11-year bull market for stocks ended last month. Though cash holdings increased by a large amount, some individual investors have either been buying stocks or actively looking for bargains. The survey period lasted the entire month of March.

March AAII Asset Allocation Survey results:

• Stocks and stock funds: 55.2%, down 10.9 percentage points    
• Bonds and bond funds, 18.7%, down 0.4 percentage points
• Cash: 26.1%, up 11.3 percentage points

March AAII Asset Allocation Survey details:

• Stock funds: 32.5%, down 5.0 percentage points
• Stocks: 22.8%, down 5.9 percentage points
• Bond funds: 15.3%, down 0.1 percentage points
• Bonds: 3.4%, down 0.3 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.

• Stocks and Stock Funds: 55.2%, down 10.9 percentage points
• Bonds and Bond Funds: 18.7%, down 0.4 percentage points
• Cash: 26.1%, up 11.4 percentage points

• Stocks: 22.8%, down 5.9 percentage points
• Stocks Funds: 32.5%, down 5.0 percentage points
• Bonds: 3.4%, down 0.3 percentage points
• Bond Funds: 15.3%, down 0.1 percentage points

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