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January AAII Asset Allocation Survey: Cash Allocations Rise to a 12-Month High

by AAII Staff | February 01, 2022

Cash allocations among individual investors reached their highest level since February 2021 according to the January Allocation Survey. The latest survey also shows a decline in fixed-income and equity exposure.

Stock and stock fund allocations decreased by 0.9 percentage points to 69.6%. Equity exposure was last lower in February 2021 (67.7%). January marked the 20th consecutive month AAII members’ exposure to equities was above the historical average of 61.0%.

Bond and bond fund allocations fell by 0.1 percentage points to 14.3%. Fixed-income exposure was last lower in October 2018 (13.3%). The decline keeps fixed-income exposure below its historical average of 16.0% for the 11th consecutive month.

Cash allocations grew by 1.0 percentage points to 16.1%. Cash allocations were last higher in February 2021 (16.3%). Nonetheless, last month was the 21st consecutive month that cash allocations have been below their historical average of 23.0%.

Equity allocations remain at an unusually high level (above 69%). The major indexes all fell below their 200-day moving averages in January, with this decrease beginning on January 4, 2022. The Federal Reserve pointed to an interest rate hike coming in March to attempt to curb the rampant inflation, which is now above 7%.

At the same time, optimism among individual investors about the short-term direction of the stock market reached its lowest level of 21.0% since July 2020 (20.2%) during the second-to-last week of January. Pessimism in our weekly AAII Sentiment Survey jumped to 46.7% late in the month and was also last higher in July 2020 (46.8%).



January AAII Asset Allocation Survey results:
  • Stocks and Stock Funds: 69.6%, down 0.9 percentage points
  • Bonds and Bond Funds: 14.3%, down 0.1 percentage points
  • Cash: 16.1%, up 1.0 percentage points
January AAII Asset Allocation Details:
  • Stocks: 32.8%, down 0.4 percentage points
  • Stocks Funds: 36.8%, down 0.5 percentage points
  • Bonds: 2.2%, up 0.3 percentage points
  • Bond Funds: 12.1%, down 0.4 percentage points
Historical averages:

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

Take the Asset Allocation Survey.

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