Investment Manager Sentiment Remains Bullish

The National Association of Active Investment Managers released its weekly sentiment index. Every week the NAAIM asks is members to report their total equity exposure. This number is used as a contrary index. Generally, you want to be long stocks when investment managers are uber-bearish and bullish when investment managers are bearish. This week's number came in at 66.67%, almost unchanged from last week. The number is not yet at an extreme which would indicate a market sell-off. You can see from the chart below that market tops usually coincide with a NAAIM number around 80%.

click chart for larger image

Black Swan Insights


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