December AAII Asset Allocation Survey: Investors shifted slightly from equity funds to cash


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Individual investors’ exposure to cash rebounded to 15.1% in December. The increase was offset by a corresponding decrease in equity exposure according to the latest AAII asset allocation survey.

Equity and equity fund allocations decreased 0.9 percentage points to 70.5%. The decline only reflects lower holdings in equity funds. December marked both the 10th consecutive month where equity allocations were at or above 70% and the 19th consecutive month where AAII member equity exposure was above the historical average of 61.0% .

Bond and bond fund allocations remained constant at 14.4%. This is a six-month low. Exposure to fixed income securities is below its historical average of 16.0% for the 10th consecutive month.

Cash allowances increased by 0.9 percentage points to 15.1%. They were last higher in February 2021 (16.3%). December is the 20th consecutive month that cash allocations are below the historical average of 23.0%.

Equity allocations remain at an unusually high level (above 69%). Stocks fell in December but rebounded at the end of the month, sending the S&P 500 index and the Dow Jones industrial average to new highs. In 2021, the indices continued their upward trend and set several new records.

Individual investor optimism about the short-term direction of the stock market was below 30% in December until last week, when bullish sentiment rose to 37.7%. However, bullish sentiment remained below the historical average of 38.0% for the duration of the month. Bearish sentiment jumped to 42.4% at the start of the month, surpassing its historical average of 30.5% and remaining above for the duration of the month. Additionally, neutral sentiment remained above its historical average throughout December.

December AAII Asset Allocation Results:

  • Stocks and equity funds: 70.5%, down 0.9 percentage points
  • Bonds and bond funds: 14.4%, unchanged
  • Cash: 15.1%, up 0.9 points

December AAII Asset Allocation Details:

  • Equities: 33.2%, unchanged
  • Equity funds: 37.3%, down 0.9 percentage points
  • Bonds: 1.9%, down 0.04 percentage point
  • Bond funds: 12.5%, up 0.01 percentage point

The AAII’s 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:


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