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Household Equity Exposure

Posted By Barry Ritholtz On March 18, 2010 @ 1:02 pm In Investing,Technical Analysis | Comments Disabled

I’ve previously shown the AAII survey of equity exposure [1]. Several of you have commented (or emailed) that the AAII data only goes back to 1987.

Household balance sheet data is accumulated by the Fed, and no one makes it look prettier than Ned Davis Research. Using the Federal Reserve data, NDR shows that households are now fully invested, roughly equivalent to 1972 (when rates were much higher)

Not to differ with NDR, but the present levels are only modestly over-exposed to equities — nowhere near 2000, and still a good ways below 2007 peak.

I am not sure we can say the US household is “All In” just yet. Somewhere in the 1200- to 1250 range should get us pretty close . . .



Chart via Ned Davis Research [3]

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URL to article: http://www.ritholtz.com/blog/2010/03/household-equity-exposure/

URLs in this post:

[1] AAII survey of equity exposure: http://www.ritholtz.com/blog/2008/11/individual-investor-stock-allocations/

[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/03/3-18-Equity-exoposure.jpg

[3] Ned Davis Research: http://www.ndr.com/invest/public/publichome.action

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