THE LMTR EDGE:

Join over 25,000 investors and get alerts for:
  • Market Timing Reports
  • Sentiment Updates
  • Chart of the Week
  • Weekly Podcasts
  • The Magic Number - Top Stocks

Stock Market Investment Advisors are Betting The Store With Client Money: Watch Out!

Stock Market Investment Advisors are Betting The Store With Client Money: Watch Out!  We use a number of investor sentiment gauges as contrarian indicators for guidance on where the stock market may be headed. That’s because most investors, including the so-called  professionals, historically are wrong.  One of the indicators we use is the NAAIM Exposure Index from the National Association of Active Investment Managers.  The Index represents the average exposure to US Equity markets by NAAIM  members who choose to participate in this weekly survey. As you can see from the chart below, the latest NAAIM exposure index is at 101.2. That’s a 20-year high. And that rings all sorts of alarm bells because there’s obviously tremendous irrationality among these managers. They’ve fully committed investor funds to the stock market despite today’s economic pandemic-driven uncertainties.  Why have the managers become so irrational? Remember most managers are incapable of beating the stock market indexes. So, as they’ve done in the past, they have  blindly thrown caution to the wind for Fear of Missing Out (FOMO). This index also is among a number of gauges we’ve been following that indicate investors in general have become fully committed to the market. Which means there’s a growing lack of liquidity to keep driving the stock market higher and higher.

Stock Market Investment Advisors are Betting The Store With Client Money: Watch Out!
Stock Market Investment Advisors are Betting The Store With Client Money: Watch Out!

See More Sentiment Updates:


Brad Lamensdorf

Brad Lamensdorf, the founder and portfolio manager of Active Alts, is a principal and co-manager of the AdvisorShares Ranger Equity Bear ETF. He previously managed a long-short investment partnership from 1998-2005 under the name Tarpon Capital Management. Earlier in his career Mr. Lamensdorf was an equity trader/market strategist for the Bass Brothers’ trading arm. He managed a short only portfolio in addition to co-managing a $1bil hedging program. He also served as in-house market strategist for the entire internal and external network of Bass Brothers money managers.

Leave a Reply

Your email address will not be published. Required fields are marked *

2018 - All Rights Reserved © LMTR, LLC

Privacy Policy - Contact Email: info@lmtr.com