Friday, September 01, 2017

Equity Market Nears Record High And Investors Become Less Bullish

As the equity market nears a record high, both institutional and individual investors continue to indicate they are less bullish. The NAAIM Exposure Index continues to decline with long equity exposure down to 77%.


Yesterday's AAII Sentiment Survey report showed bullish sentiment fell another 3.1 percentage points to 25% and now is below the minus one standard deviation level for bullish sentiment. 



The market rarely rewards investors for being properly positioned for a market pullback. Sentiment measures are contrarian ones and by these measures only, this widespread skepticism would suggest the market might continue to move higher.


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