April AAII Asset Allocation Survey: Allocations Stay Unchanged Amid High Levels of Neutral Sentiment

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Investors kept their portfolio holdings essentially unchanged for the third consecutive month, according to the April AAII Asset Allocation Survey. Equity allocations remained above average while fixed-income allocations stayed below 16 percent for just the third time in five years.

Stock and stock fund allocations declined 0.2 percentage points to 67 percent. April was just the third month since September 2007 in which equity allocations were at or above 67 percent. Last month was also the 13th consecutive month and the 15th out of the past 16 with equity allocations above their historical average of 60 percent.

Bond and bond fund allocations declined 0.1 percentage points to 15.6 percent. This is just the third time since 2009 that fixed-income allocations are below their historical average of 16 percent.

Cash allocations increased by 0.3 percentage points to 17.4 percent. April was the 29th consecutive month with cash allocations below their historical average of 24 percent.

The lack of change in portfolio allocations is occurring at a time when a high percentage of individual investors describe their six-month expectations for stock prices as “neutral.” While many AAII members are neither predicting stocks to rise nor fall over the next six months, many are also not viewing bonds or cash as more attractive alternatives.

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