Investors are reducing their equity allocations: Individual investors’ asset allocation to stocks dropped ~6 percentage points over the last 2 months, to 64%, the lowest since the 2022 bear market, according to the AAII Survey. This is exactly in-line with its long-term average of 64%. At the same time, fund managers’ estimated allocation fell ~3 percentage points, to 55%, the lowest since 2020. By comparison, their long-term average equity allocation is ~57%. A lot of capital remains sidelined.