AAII investors trim stocks, boost bonds
SPY•In October, individual investors’ stock and stock fund allocations fell to 70.1% from 71.7%, while bond allocations rose to 16.6% from 14.8%. Cash allocations were nearly unchanged at 13.31%.
1. Allocation shifts
The American Association of Individual Investors’ October asset allocation survey showed investors trimming stock and stock fund holdings and directing more money toward bonds. Bond allocations reached their highest level since January 2021, while cash remained near its lowest levels since December 2017.
2. Caution increases
The stock-to-cash ratio slipped to 5.26 from 5.39 in September. The 20-day moving average of the Cboe Volatility Index rose from 15.78 at the end of September to 19.42 at the end of October, and AAII’s weekly survey showed bearishness at its highest level since late September.
