All Aboard

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American households are extremely bullish on stocks right now. The US is all in!

I’m still a bull, but this market has naysayers.

Here’s BlackRock’s chief strategist Russ Koesterich:

According to the Fed’s data, the share of household financial assets devoted to cash and highly-rated government bonds has been drifting lower since the end of the financial crisis and has actually fallen below the long-run average.

Meanwhile, the same Fed data also show that investors have steadily moved into ever riskier investments, especially during the recent equity bull market. Americans now hold the largest percentage of their financial assets in stocks, corporate bonds and mutual funds – a loose proxy for exposure to riskier investments – since the third quarter of 2000, near the height of the tech bubble. The percentage of investors’ financial assets in such riskier investments is now 34.9%, just shy of the highest exposure to risky assets since the 1950s – 38.4% in the first quarter of 2000.