March AAII Asset Allocation Survey: 17-Month High for Fixed-Income Exposure

Individual investors’ exposure to fixed income rose to a 17-month high last month. The March AAII Asset Allocation Survey also shows higher cash allocations and a pullback in equity exposure.

Stock and stock fund allocations fell by 1.0 percentage points to 64.7%. The decline ends a four-month streak of rising equity exposure. Nonetheless, stock and stock fund allocations are above their historical average of 61.5% for the 34th consecutive month.

Bond and bond fund allocations rose 0.2 percentage points to 15.1%. Fixed-income exposure was last at this level in October 2021. Bond and bond fund allocations are below their historical average of 16.0% for the 25th consecutive month.

Cash allocations rebounded by 0.7 percentage points to 20.1%. Cash allocations are below their historical average of 22.5% for the fourth consecutive month.

The increase in fixed-income allocations occurred as Treasury bond yields pulled back from their recent highs. The decline in equity allocations occurred as bullish sentiment in the weekly AAII Sentiment Survey fell to historically low levels last month.

• Stocks and Stock Funds: 64.7%, down 1.0 percentage points
• Bonds and Bond Funds: 15.1%, up 0.2 percentage points
• Cash: 20.1%, up 0.8 percentage points

• Stocks: 30.9%, down 0.5 percentage points
• Stocks Funds: 33.9%, down 0.5 percentage points
• Bonds: 4.2%, down 0.0 percentage points
• Bond Funds: 11.0%, up 0.2 percentage points

• Stocks/Stock Funds: 61.5%
• Bonds/Bond Funds: 16.0%
• Cash: 22.5%