- Stock and stock fund allocations decreased by 0.6 percentage points to 64.0%.
- Bond and bond fund allocations decreased by 0.4 percentage points to 13.7%.
- Cash allocations grew by 1.1 percentage points to 22.3%. Cash exposure was last higher in April 2020 (23.0%).
Equity allocations fell to their lowest level in almost two years in July, according to the latest AAII Asset Allocation Survey. Cash allocations, meanwhile, continued to rise to their highest level in more than two years.
Stock and stock fund allocations decreased by 0.6 percentage points to 64.0%. This was the smallest exposure to equities since November 2020 (63.2%). However, the decrease was not small enough to keep equity allocations from staying above their historical average of 61.5% for the 26th consecutive month.
Bond and bond fund allocations decreased by 0.4 percentage points to 13.7%. Bond and bond fund allocations are below their historical average of 16.0% for the 17th consecutive month.
Cash allocations grew by 1.1 percentage points to 22.3%. Cash exposure was last higher in April 2020 (23.0%). Even with the increase, July was the 27th consecutive month that cash allocations have been below their historical average of 22.5%.
Although optimism among individual investors about the short-term direction of the stock market in our weekly Sentiment Survey rose throughout most of July, it continued to remain well below its historical average. At the same time, pessimism largely stayed at unusually high levels.
July AAII Asset Allocation Survey results:
- Stocks and Stock Funds: 64.0%, down 0.6 percentage points
- Bonds and Bond Funds: 13.7%, down 0.4 percentage points
- Cash: 22.3%, up 1.1 percentage points
July AAII Asset Allocation Survey details:
- Stocks: 31.1%, up 0.4 percentage points
- Stock Funds: 32.9%, down 1.1 percentage points
- Bonds: 3.4%, unchanged
- Bond Funds: 10.4%, down 0.4 percentage points
- Stocks/Stock Funds: 61.5%
- Bonds/Bond Funds: 16.0%
- Cash: 22.5%
The AAII Asset Allocation Survey has been conducted monthly since November 1987 and asks AAII members what percentage of their portfolios are allocated to stocks, stock funds, bonds, bond funds and cash. The survey and its results are available online at: https://www.aaii.com/investor-surveys.
This article was written by
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.