June AAII Asset Allocation Survey: Highest Level Of Cash Since April 2020

Cash allocations rose to their highest level in more than two years in the June AAII Asset Allocation Survey. Equity allocations, meanwhile, fell for the sixth time in seven months.

Stock and stock fund allocations declined 2.5 percentage points to 64.6%. 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 25th consecutive month.

Bond and bond fund allocations increased 0.3 percentage points to 14.1%. Bond and bond fund allocations are also below their historical average of 16.0% for the 16th consecutive month.

Cash allocations increased by 2.1 percentage points to 21.2%. Cash exposure was last higher in April 2020 (23.0%). Even with the increase, June was the 26th consecutive month that cash allocations have been below their historical average of 22.5%.

The historical averages for equity and cash allocations were updated this month. The historical average for stocks and stock funds was raised from 61.0% to 61.5%. The historical average for cash was lowered from 23.0% to 22.5%.

Stock prices fell in June. In addition, optimism in our weekly Sentiment Survey was at an unusually low level throughout most of June. Sentiment does not always result in altered allocations as many AAII members follow a long-term approach to investing.

June AAII Asset Allocation Survey results:

• Stocks and Stock Funds: 64.6%, down 2.5 percentage points
• Bonds and Bond Funds: 14.1%, up 0.3 percentage points
• Cash: 21.2%, up 2.1 percentage points

June AAII Asset Allocation Survey details:

• Stocks: 30.7%, down 0.5 percentage points
• Stock Funds: 34.0%, down 1.9 percentage points
• Bonds: 3.4%, up 0.3 percentage points
• Bond Funds: 10.8%, unchanged

Historical averages:

• 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.