Every week the National Association of Active Investment Managers asks professional money managers to report their total equity exposure. This week the average equity exposure increased slightly to 63.11%, up from 62.47 previously. This shows that the pros are not completely buying the recent market rally. Even though the market has surpassed the highs reached back in April, average total equity exposure is much lower. Because this is a contrary indicator, market corrections generally coincide with a number close to 80% or more. So far, we have not yet reached this level, indicating the market could continue higher in the short-term.
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Black Swan Insights