Investor Sentiment

Investor sentiment is a general term that provides an indication of how investors are positioned in the market. The predictive capability of investor sentiment is thought to be highest when extreme values are reached.

Investor sentiment

Investor sentiment is a general term that provides an indication of how investors are positioned in the market.

 


Interpretation of Investor sentiment

The predictive capability of investor sentiment is thought to be highest when extreme values are reached.  For example, when a high proportion of investors express a bearish (negative) sentiment, some analysts consider it to be a strong signal that a market bottom may be near. 



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