June AAII Asset Allocation Survey: Equity Allocations Continue to Rise

Individual investors’ exposure to equities set a new 42-month high in June according to the latest AAII Asset Allocation Survey. Fixed-income allocations, meanwhile, declined to a 32-month low.

Stock and stock fund allocations increased by 0.7 percentage points to 71.2%, marking the 13th consecutive month that allocations are above the historical average of 61.0%. Equity allocations were last higher in December 2017 (72.0%).

Bond and bond fund allocations pulled back by 0.3 percentage points to 14.7%, staying below their historical average of 16.0% for the fourth consecutive month. Fixed-income allocations were last lower in October 2018 (13.3%).

Cash allocations decreased by 1.0 percentage points to 14.1%. Cash allocations were last lower in January 2020 (13.8%). June was the 14th consecutive month cash allocations have been below their historical average of 23.0%.

Equity allocations are at an unusually high level for the fourth consecutive month. The strong rebound in the stock market continues to increase the value of equities in individual investors’ portfolios relative to other assets. At the same time, optimism in our weekly AAII Sentiment Survey was above average throughout June.

• Stocks and Stock Funds: 71.2%, up 0.7 percentage points
• Bonds and Bond Funds: 14.7%, up 0.3 percentage points
• Cash: 14.1%, down 1.0 percentage points

• Stocks: 32.2%, up 0.8 percentage points
• Stocks Funds: 39.0%, down 0.1 percentage points
• Bonds: 2.5%, up 0.3 percentage points
• Bond Funds: 12.2%, down 0.0 percentage points

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