Retail Stock Allocations Reach Highest Level Since 2017 as Cash Holdings Decline

Retail investors are increasing their exposure to equities, according to the latest AAII asset allocation survey.
Stock allocations rose 0.7 percentage points in September to 71.8%, the highest reading since December 2017 and the second-highest since July 2000. Equity exposure has increased 3.3 percentage points since April, marking its largest five-month gain since October 2025.
Meanwhile, cash allocations declined 1.0 percentage point to 13.3%, their lowest level since December 2017. Bond allocations increased 0.3 percentage points to 14.9%, remaining below their long-term average of 15.9%.
The shift toward equities and away from cash suggests stronger risk appetite among surveyed investors. However, the reported 71.8% equity allocation also matches the survey's stated average since 1987, providing important context for claims of historically extreme positioning.