July AAII Asset Allocation Survey: Allocations Remain Relatively Unchanged and Cash Continues to Decline

Asset allocations among individual investors moved minimally last month, according to the July AAII Asset Allocation Survey. Cash holdings declined for a second month.

Stock and stock fund allocations remained relatively unchanged, decreasing by 0.1 percentage points to 71.1%. This marks the 14th consecutive month that equity allocations are above their historical average of 61.0%.

Bond and bond fund allocations grew by 0.3 percentage points to 15.0%. Even with the increase, fixed-income exposure stayed below its historical average of 16.0% for the fifth consecutive month. Fixed-income allocations were last lower in October 2018 (13.3%).

Cash allocations decreased by 0.2 percentage points to 13.9%. Cash allocations were last lower in January 2020 (13.8%). July was the 15th consecutive month that cash allocations have been below their historical average of 23.0%.

Equity allocations are at an unusually high level for the fifth consecutive month (more than one standard deviation above the historical average). The continued rebound in the stock market continues to increase the value of equities in individual investors’ portfolios relative to other assets.

• Stocks and Stock Funds: 71.1%, down 0.1 percentage points
• Bonds and Bond Funds: 15.0%, up 0.3 percentage points
• Cash: 13.9%, down 0.2 percentage points

• Stocks: 32.3%, up 0.1 percentage points
• Stocks Funds: 38.8%, down 0.2 percentage points
• Bonds: 2.6%, up 0.1 percentage points
• Bond Funds: 12.4%, up 0.3 percentage points

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