April AAII Asset Allocation Survey: Equity Exposure Reaches New 3-Year High

Individual investors’ exposure to equities set a new three-year high in April according to the latest AAII Asset Allocation Survey. Fixed-income allocations, meanwhile, declined to a 30-month low.

Stock and stock fund allocations increased by 0.3 percentage points to 70.3%, marking the 11th consecutive month equity allocations are above the historical average of 61.0%. Equity allocations were last higher in January 2018 (71.2%).

Bond and bond fund allocations pulled back by 0.2 percentage points to 15.1%, staying below their historical average of 16.0% for the second consecutive month. Fixed-income allocations were last lower in October 2018 (13.3%).

Cash allocations were essentially unchanged at 14.7%. Cash allocations were last lower in January 2020 (13.8%). April was the 12th consecutive month cash allocations have been below their historical average of 23.0%.

Equity allocations are at an unusually high level for the second consecutive month. The strong rebound in the stock market has increased the value of equities and in individual investors’ portfolios relative to other assets. We also saw a continuation of unusually high levels of optimism being registered by our weekly AAII Sentiment Survey throughout much of April.

• Stocks and Stock Funds: 70.3%, up 0.3 percentage points
• Bonds and Bond Funds: 15.1%, down 0.3 percentage points
• Cash: 14.7%, down 0.1 percentage points

• Stocks: 31.5%, up 0.7 percentage points
• Stocks Funds: 38.8%, down 0.4 percentage points
• Bonds: 2.4%, up 0.1 percentage points
• Bond Funds: 12.6%, down 0.3 percentage points

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