AAII Cash allocations have fallen again — and they’re now close to 25-year lows.
That’s the message from the latest AAII Asset Allocation Survey — the lesser-known (but very useful) sibling of the weekly AAII Bull–Bear survey.
What the latest reading says
- Cash allocation: 14.2%
- That’s the 4th percentile since 1987
- It’s also just above the ~14% “sell-zone” threshold
Historically, when cash allocations fall below ~14%, forward 12-month S&P 500 returns have been flat on average, and below average 74% of the time.
Caveat: this survey was taken before the US/Iran conflict, so real-time sentiment may be a touch less bullish.