March AAII Asset Allocation Survey: 37-Month High for Equity Exposure

Individual investors’ exposure to equities reached a 37-month high in March according to the latest AAII Asset Allocation Survey. Fixed-income allocations, meanwhile, declined to a 29-month low.

Stock and stock fund allocations increased by 2.3 percentage points to 70.0%, marking the 10th consecutive month that equity allocations are above the historical average of 61.0%. Equity allocations were last higher in February 2018 (70.1%).

Bond and bond fund allocations pulled back by 0.7 percentage points to 15.3%, falling below its historical average of 16.0% for the first time since February 2019 (15.8%). Fixed-income allocations were last lower in October 2018 (13.3%).

Cash allocations decreased 1.5 percentage points to 14.7%, marking a 14-month low and the 11th consecutive month cash allocations have been below their historical average of 23.0%. Allocations in cash were last lower in January 2020 (13.8%).

Individual investors’ exposure to equities reached an unusually high level in March (more than one standard deviation above the historical average). Bullish sentiment was at an unusually high level throughout much of March. At the same time, rising stock prices and falling bond prices shift allocations—even for those investors who made no changes to their portfolios.

• Stocks and Stock Funds: 70.0%, up 2.3 percentage points
• Bonds and Bond Funds: 15.3%, down 0.7 percentage points
• Cash: 14.7%, down 1.5 percentage points

• Stocks: 30.8%, up 1.8 percentage points
• Stocks Funds: 39.2%, up 0.5 percentage points
• Bonds: 2.4%, up 0.3 percentage points
• Bond Funds: 13.0%, down 1.0 percentage points

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