September AAII Asset Allocation Survey: Stock Allocations Pull Back From Recent High

Individual investors lightened their exposure to equities relative to the past three months while still maintaining a historically high allocation to stocks and stock funds. The September AAII Allocation Survey also shows a small rebound in preference for less volatile assets.

Stock and stock fund allocations decreased by one percentage point to 70.2%. September marked the seventh consecutive month that equity allocations were at or above 70%. September was also the 16th consecutive month that AAII members’ exposure to equities was above the historical average of 61.0%.

Bond and bond fund allocations rose by 0.3 percentage points to 15.5%. Even with the increase, fixed-income exposure stayed below its historical average of 16.0% for the seventh consecutive month.

Cash allocations increased by 0.6 percentage points to 14.3%. Cash allocations were last higher in May 2021 (15.1%). September was the 17th consecutive month that cash allocations have been below their historical average of 23.0%.

Equity allocations remain at an unusually high level. Though our weekly Sentiment Survey showed the level of optimism staying below 30% during most of September, individual investors largely maintained their stock and stock fund investments.

• Stocks and Stock Funds: 70.2%, down 0.9 percentage points
• Bonds and Bond Funds: 15.5%, up 0.3 percentage points
• Cash: 14.3%, up 0.6 percentage points

• Stocks: 31.7%, down 0.6 percentage points
• Stocks Funds: 38.5%, down 0.3 percentage points
• Bonds: 2.4%, down 0.0 percentage points
• Bond Funds: 13.1%, up 0.4 percentage points

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