Timers take big leap into the stock market

Financial advisers who are members of the National Association of Active Investment Managers Inc. of Littleton, Colo., made a record leap into the stock market late last month.
APR 12, 2009
Market timers are jumping in. Financial advisers who are members of the National Association of Active Investment Managers Inc. of Littleton, Colo., made a record leap into the stock market late last month. NAAIM surveys its members each Wednesday about their overall allocation to equities. On March 25, NAAIM members had a 47.8% exposure, on average, up from just 9.9% the prior week. That was the greatest one-week increase since the group began collecting data from its members in June 2006. "And it's the largest [stock] exposure in 10 months," said NAAIM president Will Hepburn, founder of Hepburn Capital Management LLC in Prescott, Ariz., which runs $20 million for clients. But with timers jumping in, is it time to jump out? No, Mr. Hepburn said. The NAAIM sentiment measure isn't a contrary indicator, though it has consistently lagged market direction. "We're not fortunetellers," Mr. Hepburn said, though he noted that NAAIM members did get more conservative last year as the markets headed down. After June 18, 2008, the NAAIM survey showed that its members were never more than 40% exposed to the stock market, he said.

Latest News

WallStreetBets takes on the SEC — and makes a surprisingly sharp case
WallStreetBets takes on the SEC — and makes a surprisingly sharp case

The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline