Market Sentiment

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 2.11.15

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. As the market chugged higher week-over-week, active investment managers barely changed their exposure, only slightly decreasing it from 88% to 84%

The American Association of Individual Investors Sentiment Survey measures the percentage of individual investors who are bullish and bearish on the stock market. Despite the uncertainty in Europe, bears have run for the hills. Bearish sentiment sharply dropped from 32% to 20% while bullish sentiment ticked up from 35% to 40%, and is now above its long-term average.

The Volatility Index, or “fear index,” is a key measure of the markets’ expectation of volatility. We greeted the new year with heighted volatility but since then, the VIX index continues to make a serious of lower-highs, as a sign of investors becoming more optimistic. 

Tom PsarofagisComment