Money Managers Bailed On Equities

By Gregory Clay

Monday, February 5, 2018 12:13 PM EDT

The National Association of Active Investment Managers (NAAIM) Exposure Index represents the average exposure to US Equity markets reported by NAAIM members.

The blue bars depict a two-week moving average of the NAAIM managers’ responses. As the name indicates, the NAAIM Exposure Index provides insight into the actual adjustments active risk managers have made to client accounts over the past two weeks. The current survey result is for the week ending 01/31/2018. Fourth-quarter NAAIM exposure index averaged 70.97%. Last week the NAAIM exposure index was 74.43 %, and the current week’s exposure is at 55.58%.

Money managers bailed out of equities to the lowest level since November. It is somewhat disconcerting that investors are not stepping in to buy the recent dip. This might be a signal of a longer term market correction.

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