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July AAII Asset Allocation Survey: Fixed-Income Allocations Decline to a 15-Month Low

by AAII Staff | August 03, 2020

Individual investors’ exposure to fixed-income assets declined to its lowest level in 15 months according to the latest AAII Asset Allocation Survey. Exposure to equities declined as well, while cash allocations rose.

Stock and stock fund allocations were down 1.0 percentage points to 62.2%. The historical average is 61.0%.

Bond and bond fund allocations declined 0.4 percentage points to 17.9%. This was the lowest allocation to fixed-income assets since April 2019 (17.1%). Even with the decrease, bond and bond fund allocations are above their historical average of 16.0% for the 17th consecutive month and the 18th time in 19 months.

Cash allocations rebounded 1.5 percentage points to 19.9%. The historical average is 23.0%.

The decline in fixed-income allocations occurred as bond yields fell throughout July. At the same time, optimism in our weekly sentiment survey ended last month at one of the 40 lowest levels recorded in the survey’s 33-year history.

 

July AAII Asset Allocation Survey results:

  • Stocks and stock funds: 62.2%, down 1.0 percentage points       
  • Bonds and bond funds: 17.9%, down 0.4 percentage points
  • Cash: 19.9%, up 1.5 percentage points

July AAII Asset Allocation Survey details:

  • Stocks: 28.6%, up 0.7 percentage points
  • Stock Funds: 33.6%, down 1.8 percentage points
  • Bonds: 3.4%, up 0.4 percentage points
  • Bond Funds: 14.5%, down 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.


July AAII Asset Allocation Survey results:
  • Stocks and Stock Funds: 62.2%, down 1.1 percentage points
  • Bonds and Bond Funds: 17.9%, down 0.4 percentage points
  • Cash: 19.9%, up 1.5 percentage points
July AAII Asset Allocation Details:
  • Stocks: 28.6%, up 0.7 percentage points
  • Stocks Funds: 33.6%, down 1.8 percentage points
  • Bonds: 3.4%, up 0.4 percentage points
  • Bond Funds: 14.5%, down 0.8 percentage points
Historical averages:

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

Take the Asset Allocation Survey.

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