September AAII Asset Allocation Survey: Cash Allocations Slightly Increase

Individual investors’ allocation to equities fell slightly last month. Fixed-income exposure remained flat and cash allocations rose slightly in the September Asset Allocation Survey.

Stock and stock fund allocations declined 1.2 percentage points to 65.9%. Equity allocations are at their lowest level since May 2023 (65.2%). Even with September’s decrease, stock and stock fund allocations are above their historical average of 61.5% for the 40th consecutive month.

Bond and bond fund allocations decreased 0.1 percentage points to 15.6%. September marked the 31st consecutive month with fixed-income allocations below their historical average of 16.0%.

Cash allocations increased 1.1 percentage points to 18.5%. The rise was not enough to prevent cash allocations from staying below their historical average of 22.5% for the 10th consecutive month and the 39th time out of the last 41 months.

Concurrent with equity allocations falling last month, pessimism in the weekly AAII Sentiment Survey rose to its highest level since mid-May 2023. Additionally, the benchmark 10-year Treasury bond yield rose to a 15-year high.

• Stocks and Stock Funds: 65.9%, down 1.2 percentage points
• Bonds and Bond Funds: 15.6%, up 0.1 percentage points
• Cash: 18.5%, up 1.1 percentage points

• Stocks: 30.7%, down 0.9 percentage points
• Stocks Funds: 35.3%, down 0.3 percentage points
• Bonds: 5.4%, up 0.2 percentage points
• Bond Funds: 10.2%, down 0.1 percentage points

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