U.S. Demographics – Portfolio Allocation to Equities Chart suggesting that the average U.S. investor will move from holding 59% in equities to 56% by 2031, due to aging. Image: Arbor Research & Trading LLC
S&P 500 Capital Allocation – Dividends, Buybacks and Capital Expenditures 2018 corporate tax cut boosted dividends and buybacks, but not capital expenditures. Image: Oxford Economics
Allocation of U.S. Household Financial Assets According to Goldman Sachs, U.S. households are expected to buy $30 billion in U.S. stocks in 2020. Image: Goldman Sachs Global Investment Research
Allocation of U.S. Household Capital Investments This chart shows that American households are much more invested in equities than in the past. Image: TS Lombard
Allocation to Cash and Recession Probability This chart shows the correlation between allocation to cash and the NY Fed 12-month ahead recession probability indicator. Image: Barclays Research
Equity Volatility vs. Equity Allocation As equity volatility rises (inverted on the chart), equity allocations come down. You may alos like “The Yield Curve Leads VIX (Volatility) by Three Years.” Picture Source: Deutsche Bank
Investor Allocation by Region in the U.S. This chart is a good example of investment bias and shows the likelihood of owning stocks in an industry vs. national average. Picture Source: J.P. Morgan Asset Management
The Great Re-allocation from Equities to Bonds Continues Since the end of 2018, S&P 500 ETFs have seen outflows, while long Treasury ETFs have seen inflows. Image: Macrobond and Nordea
Mutual Fund Flows – Asset Allocation Funds since 2000 Dynamic/flexible and balanced funds saw significant outflows since 2018. It is obvious that many investors don’t have a long-term view. Image: Topdown Charts
Aggregate CTAs Equity Exposure CTAs equity exposure also remains at a high level. Image: Deutsche Bank Asset Allocation