Market Sentiment

Extracted Attributes

• Synonym

  Investor attention

• Definition

  General prevailing attitude of investors as to anticipated price development in a market

• Characteristic

  Good predictor of market moves, especially when extreme

• Influencing Factor

  Tariffs policy

• Measurement Method

  Composite contrarian sentiment indicator

• Sentiment Type: Bearish

  Investors expect downward price movement

• Sentiment Type: Bullish

  Investors expect upward price movement

• Sentiment Type: Neutral

  Investors see no change in market direction

• AAII Survey Average: Bearish

  30.5%

• AAII Survey Average: Bullish

  38.0%

• AAII Survey Average: Neutral

  31.5%

Timeline

• News analytics, including sentiment analysis of textual data, began to be used as a method for measuring market sentiment. (Source: Wikipedia)

  2010-01-01

Market sentiment

Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events. If investors expect upward price movement in the stock market, the sentiment is said to be bullish. On the contrary, if the market sentiment is bearish, most investors expect downward price movement. Market participants who maintain a static sentiment, regardless of market conditions, are described as permabulls and permabears respectively. Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is used because it is believed to be a good predictor of market moves, especially when it is more extreme. Very bearish sentiment is usually followed by the market going up more than normal, and vice versa. A bull market refers to a sustained period of either realized or expected price rises, whereas a bear market is used to describe when an index or stock has fallen 20% or more from a recent high for a sustained length of time. Market sentiment is monitored with a variety of technical and statistical methods such as the number of advancing versus declining stocks and new highs versus new lows comparisons. A large share of the overall movement of an individual stock has been attributed to market sentiment. The stock market's demonstration of the situation is often described as all boats float or sink with the tide, in the popular Wall Street phrase "the trend is your friend". In the last decade, investors are also known to measure market sentiment through the use of news analytics, which include sentiment analysis on textual stories about companies and sectors.

Web Search Results

• AAII Investor Sentiment Survey

  Investor sentiment, also referred to as market sentiment, is the general mood of investors toward the market. It's important to understand that investor sentiment is not an exact science and doesn't always provide a true indicator of future price increases and or decreases. [...] Market sentiment indicators are psychology-based ratios or calculations that attempt to quantify investor mood toward the market in order to predict how current beliefs and positions may affect future market behavior. However, remember that this information should always be taken with a grain of salt and not in isolation. Some common market sentiment indicators include: [...] Bullish market sentiment—the percentage of respondents that say the market will trend up over the next six months—has averaged 38.0% over the life of the survey. Neutral market sentiment—the percentage that sees no change in market direction—has averaged 31.5%. Bearish sentiment—the percentage that think the market will trend down—has averaged 30.5% over the life of the survey.

• What Are Market Sentiment Indicators and Why Do They Matter?

  ‍ Conclusion: Embracing the Power of Sentiment for Smarter Decisions ------------------------------------------------------------------ Market sentiment is a powerful force that shapes economic outcomes and influences decision-making across industries and countries. By understanding the key drivers of sentiment, leveraging advanced sentiment analysis tools, and staying agile in the face of change, businesses, investors, and policymakers can make smarter, more informed decisions. [...] At its core, market sentiment is shaped by a complex interplay of factors: macroeconomic indicators, innovation potential, and media narratives. For instance, a stable economic environment with low taxes and a strong emphasis on innovation often fosters positive market sentiment, encouraging investment and business expansion. Conversely, negative media coverage or political instability can quickly dampen confidence, leading to market contractions. Sentiment indicators like the CBOE Volatility [...] Understanding market sentiment is essential for businesses looking to make informed, data-driven decisions. By analyzing sentiment trends, companies can anticipate market movements, identify growth opportunities, and adjust strategies to align with evolving conditions. For example, if sentiment in a specific region is shifting positively due to favorable regulatory changes, a business might decide to increase its investment in that market.

• Fear and Greed Index - Investor Sentiment | CNN

  The most well-known measure of market sentiment is the CBOE Volatility Index, or VIX. The VIX measures expected price fluctuations or volatility in the S&P 500 Index options over the next 30 days. The VIX often drops on days when the broader market rallies and soars when stocks plunge. But the key is to look at the VIX over time. It tends to be lower in bull markets and higher when the bears are in control. The Fear & Greed Index uses increasing market volatility as a signal for Fear. [...] The Fear & Greed Index is used to gauge the mood of the market. Many investors are emotional and reactionary, and fear and greed sentiment indicators can alert investors to their own emotions and biases that can influence their decisions. When combined with fundamentals and other analytical tools, the Index can be a helpful way to assess market sentiment. Return to Fear & Greed Index Related Image 1 Quote Lookup Ad Feedback Latest Fear & Greed ------------------- [...] Games Daily Crossword Jumble Crossword Sudoblock Sudoku 5 Things Quiz About CNN Subscribe Photos Investigations CNN Profiles CNN Leadership CNN Newsletters Work for CNN Index Update Stock Price Breadth is based on the McClellan Summation Index. A minor calculation change was made recently to improve this indicator and overall score for Fear & Greed Index. Markets DOW 44,828.53+344.11 0.77%

• Market Sentiment Tracking Platform

  Published Time: 2022-05-09T09:45:31+02:00 Market Sentiment Tracking Platform =============== Image 3: StockGeist logo originalImage 4: StockGeist logo originalImage 5: StockGeist logo originalImage 6: StockGeist logo original ") ") Image 18: Home We use cookies and other technologies to ensure that we give you the best experience on our website. By continuing to use this website you agree to our privacy policy. Accept

• 2025 Global Market Outlook | Russell Investments

  China faces headwinds from the property market collapse, deflation pressures, and U.S. tariffs. The policy response continues to be reactionary, rather than one where proactive steps are taken to solve structural problems such as high savings and low household consumption. There are downside risks to consensus expectations for 4.5% GDP (gross domestic product) growth in 2025. 3. Market Sentiment and Valuations [...] Markets in 2025 will demand more than conventional wisdom about U.S. outperformance and global headwinds. While our composite contrarian sentiment indicator signals investor optimism, it remains below critical correction thresholds. This creates a tactical opening for disciplined investors. [...] Just as robot chopsticks can catch spacecraft in 2024, it’s plausible that markets can remain resilient through policy uncertainty in 2025. A disciplined approach to building total portfolios will be critical to investor outcomes. Composite Contrarian Indicator Image 9: Chart Equity market sentiment is neutral Regional snapshots ------------------ ### United States