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

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Cash allocations hit 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.

Equity and equity fund allocations decreased 2.5 percentage points to 64.6%. This is the lowest equity exposure since November 2020 (63.2%). However, the decline was not small enough to prevent equity allocations from remaining above their historical average of 61.5% for the 25th consecutive month.

Allocations to bonds and bond funds rose 0.3 percentage points to 14.1%. Allocations to bonds and bond funds are also below their historical average of 16.0% for the 16th consecutive month.

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

Historical averages for equity and cash allocations were updated this month. The historical average for equities and equity funds fell from 61.0% to 61.5%. The historical average of liquidity has been lowered from 23.0% to 22.5%.

Stock prices fell in June. Additionally, optimism in our weekly sentiment survey was at an unusually low level for most of June. Sentiment does not always translate into modified allocations, as many AAII members take a long-term approach to investing.

June AAII Asset Allocation Survey Results:

  • Stocks and equity 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:

  • Equities: 30.7%, down 0.5 percentage points
  • Equity funds: 34.0%, down 1.9 percentage points
  • Bonds: 3.4%, up 0.3 percentage point
  • 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, equity funds, bonds, bond funds and cash. The survey and its results are available online at: https://www.aaii.com/investor-surveys.

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