Individual investors’ fixed-income allocations rose to a four-month high last month, according to the June AAII Asset Allocation Survey. Equity allocations rose, as well, while cash allocations pulled back.
Stock and stock fund allocations rebounded by 1.7 percentage points to 67 percent. This is the 15th consecutive month and the 17th out of the past 18 months with equity allocations above their historical average of 60 percent.
Bond and bond fund allocations rose 0.5 percentage points to 16 percent, the largest allocation since February. The increase puts fixed-income allocations at their historical average of 16 percent.
Cash allocations fell 2.1 percentage points to 17.1 percent. The decline follows May’s eight-month high for cash allocations. June’s decline puts cash allocations below their historical average of 24 percent for the 31st consecutive month.