Investors are all-in on US stocks despite the recent pullback:
Households, mutual funds, pension funds, and foreign investors’ allocation to US equities is up to a record 51%.
This is above the previous peaks of 50% in the 2000 Dot-Com Bubble and prior to the 2022 bear market.
As a result, investors now allocate just 14% and 19% of their financial assets to cash and debt instruments.
To put this into perspective, at the low of the 2008 Financial Crisis, allocation to equities was at 28%.
Investors have rarely been this optimistic about the US stock market.
