IBD Introduces New Stock Market Exposure Levels to Help Investors Navigate Changing Conditions
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The new stock market exposure levels provide more granular guidance on how much of your portfolio to have invested based on current conditions. The 5 levels range from 0-20% invested to 80-100%.
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The concept of gradually increasing exposure as conditions improve and decreasing it as conditions weaken has proven useful for managing risk.
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Context matters - IBD editors will use their judgment along with rules to determine the recommended exposure levels.
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With the new exposure levels, ETF investors who follow IBD's market strategy will have more flexibility on when to buy and sell.
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The exposure levels throughout all market cycles will give investors greater insight into managing their portfolios.