Usually we get the NAAIM number on Wednesday, but their site was down so we will cover it today. The NAAIM sentiment survey asks active investment managers to describe their total equity exposure. This week total equity exposure fell to 67.14% from 76.42% last week indicating some caution among investment managers. The NAAIM survey should not be relied upon on its own as a trading indicator, but rather combined with other indicators. Personally, I like to compare it to AAII retail sentiment so I can see what the retailers are thinking and what investment managers are doing. They both show that people are starting to get cold feet about the rally in the markets.
Here is a chart which compares NAAIM sentiment survey with the SP 500.
Black Swan Insights
NAAIM Investment Manager Sentiment Continues To Rise