AAII Survey: Investors' Stock Allocations Surge to 64-Month High
The latest AAII Asset Allocation Survey, conducted by the American Association of Individual Investors (AAII), shows a significant shift in investors' portfolio preferences. Stock market allocations have surged, while bond allocations have decreased, and cash holdings remain below their historical average.
In the September survey, stock market fund allocations increased to 39.9%, with individual investors' stock market allocations rising to 68.3%. This marks the 64th consecutive month that stock market and stock market fund allocations have been above their historical average. Meanwhile, bond fund allocations initially increased to 16.3% but later decreased to 5.0%. Bond and bond fund allocations have been above their historical average for four out of the past six months.
Cash allocations, which have been below their historical average for 34 consecutive months, decreased further to 15.4% in September. The AAII Asset Allocation Survey, conducted monthly since November 1987, provides a snapshot of the portfolio composition of AAII's members.
The September AAII Asset Allocation Survey reflects a bullish sentiment among individual investors, with a substantial increase in stock market allocations and a decrease in bond allocations. Cash holdings continue to be low, indicating investors' confidence in the stock market. The AAII, a non-profit organization dedicated to financial education, conducts this survey to offer insights into the sentiment-driven market assessments of private investors.
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