Retail investors boost stock exposure to highest since 2017
SPY•Retail investors’ stock and stock fund allocations rose to 71.7% in September from 71.1% in August, the highest since December 2017. Cash holdings fell to 13.3% from 14.3%, while bond exposure edged up to 14.8% from 14.6%.
1. Equity allocations rise
The latest American Association of Individual Investors asset allocation survey showed retail investors increased their stock exposure in September and reduced cash holdings. The stock-to-cash ratio climbed to 5.39 from 4.97 in August, its highest reading since December 2017.
2. Survey context
The article says these measures are not particularly reliable market-timing tools, though they can provide context. The survey also showed cash allocations at their lowest level since December 2017. Separately, AAII’s weekly sentiment survey showed bearishness eased, though bears still outnumbered bulls.
