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 2.4.15

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. In spite of the market moving higher, investment managers slightly trimmed back their U.S. equity exposure from 92.2% to 88.2%.

The American Association of Individual Investors Sentiment Survey measures the percentage of individual investors who are bullish and bearish on the stock market. According to the most recent data, the percentage of bullish investors dropped week-over-week from 44.1% to 35.5%. Despite the drop in bullish sentiment, it is ironic that the S&P is on track for one of its best weeks of the year. In addition, bullish sentiment is now below its long term average of 39%.

The Volatility Index, or “fear index,” is a key measure of the markets’ expectation of volatility. Volatility continues to remain heighted in 2015 but is trading in a tighter and tighter range. 

Tom PsarofagisComment