July AAII Asset Allocation Survey: 14-Month High for Equity Allocations

Individual investors’ equity allocation reached a 14-month high last month. The July Asset Allocation Survey also shows fixed-income exposure rebounding and cash allocations falling.

Stock and stock fund allocations increased 1.0 percentage points to 67.0%. Equity allocations were last higher in May 2022 (67.1%). Additionally, this increase keeps stock and stock fund allocations above their historical average of 61.5% for the 38th consecutive month.

Bond and bond fund allocations increased 0.9 percentage points to 15.0%. July marked the 29th consecutive month with fixed-income allocations below their historical average of 16.0%.

Cash allocations decreased 1.8 percentage points to 18.0%. This is the smallest allocation to cash since April 2022. The drop keeps cash allocations below their historical average of 22.5% for the eighth consecutive month.

Optimism in the weekly AAII Sentiment Survey has been above average for all of July, while pessimism has been below average and reached its lowest level since November 2021.

• Stocks and Stock Funds: 67.0%, up 1.0 percentage points
• Bonds and Bond Funds: 15.0%, up 0.9 percentage points
• Cash: 18.0%, down 1.9 percentage points

• Stocks: 32.2%, down 2.1 percentage points
• Stocks Funds: 34.8%, up 3.1 percentage points
• Bonds: 4.9%, up 0.9 percentage points
• Bond Funds: 10.1%, up 0.0 percentage points

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