The Naim exposure index, a measure of active money managers' exposure to the US stock market, is currently at 99%, a level only seen four times before. This high exposure level, coupled with the healthcare sector's declining earnings and valuation (potentially approaching a 20-30% decline), suggests a likely market correction. The firm is rebalancing its portfolio by reducing some risky bets and focusing on other opportunities. Historically, high exposure readings have coincided with stock market corrections. Interest rate stabilization since October 2022 has provided a bullish backdrop, but the firm remains cautious given the current high exposure levels. They are also noting the valuation of the healthcare sector, which is reaching an expensive level, as another reason to rebalance. The firm is recommending investors take advantage of current discounts on their portfolio services.