August AAII Asset Allocation Survey: 15-Month High for Equity Allocations

Individual investors’ equity allocation reached a 15-month high last month. The August Asset Allocation Survey also shows fixed-income exposure rebounding and cash allocations falling.

Stock and stock fund allocations rose 0.1 percentage points to 67.1%. Though a very small increase, it was enough to put equity allocations at their highest level since May 2022, which was also 67.1%. Additionally, last month’s increase keeps stock and stock fund allocations above their historical average of 61.5% for the 39th consecutive month.

Bond and bond fund allocations increased 0.5 percentage points to 15.5%. August marked the 30th consecutive month with fixed-income allocations below their historical average of 16.0%.

Cash allocations decreased 0.6 percentage points to 17.4%. This is the smallest allocation to cash since April 2022 (17.6%). The drop keeps cash allocations below their historical average of 22.5% for the ninth consecutive month.

Though equity allocations rose last month, optimism in the weekly AAII Sentiment Survey fell back below average. Additionally, yields on the benchmark 10-year Treasury bond hit their highest level since 2007 in August.

• Stocks and Stock Funds: 67.1%, up 0.1 percentage points
• Bonds and Bond Funds: 15.5%, up 0.5 percentage points
• Cash: 17.4%, down 0.6 percentage points

• Stocks: 31.6%, down 0.6 percentage points
• Stocks Funds: 35.6%, up 0.7 percentage points
• Bonds: 5.2%, up 0.3 percentage points
• Bond Funds: 10.3%, up 0.1 percentage points

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