The latest weekly market sentiment data from the National Association of Active Investment Managers and the American Association of Individual Investors for the week ending 1.28.15
The National Association of Active Investment Managers Exposure Index, measures the average U.S. Equity exposure by active investment managers. As the name indicates, the NAAIM Exposure Index provides insight into how investment managers are adapting and viewing the current market environment. Week-over-week, active investment managers aggressively increased their exposure to U.S. equities, up to 92.6% (vs 76.2% last week).
The American Association of Individual Investors Sentiment Survey measures the percentage of individual investors who are bullish and bearish on the stock market. With the Greek elections in the rear view mirror and the meat of earnings season underway, bullish investors put their toes back in the water. Week-over-week, the percentage of bullish investors increased from 37.1% to 44.2%. More importantly, the percentage of bullish investors is now back above its long term average of 38.9%
The Volatility Index, or “fear index,” is a key measure of the markets’ expectation of volatility. Volatility continues to remain heighted in 2015 as the market continues to digest a slew of earnings and central bank news.