Global Equity Allocations Hit Record High, Surpassing Dot-Com Bubble Levels
Equity allocations among U.S. and G10 institutional investors have reached unprecedented levels, exceeding peaks seen before the 2008 crisis and during the Dot-Com Bubble.
The share of equities held by U.S. households, pensions, insurance firms, and investment funds has climbed to a record 65% of their portfolios. This marks a 31-percentage-point surge since the 2008 Financial Crisis. The allocation now stands 8 percentage points above the peak reached during the 2000 Dot-Com Bubble and 26 percentage points above the 1960s peak.
Across G10 countries, the same group of investors has pushed equity allocations to a record 57%. That is roughly 12 percentage points above the previous highs recorded just before the 2008 crisis and the Dot-Com burst.
Source: The Kobeissi Letter