The NAAIM Exposure Index represents the average exposure to U.S. equity markets as reported by members of the National Association of Active Investment Managers (NAAIM) in a weekly survey. That index, like any other sentiment indicator, is a useful gauge of the possible future direction of a market1 that can be incorporated into one’s asset allocation process. In this blog post, I will analyze an example of such incorporation that allows advisors to move to a modified buy-and-hold strategy while