Investor Sentiment and Stock returns

http://education.fisherinvestments.com Investors are not all alike, and neither are their sentiments. We show that the sentiment of Wall Street strategists is unrelated to the sentiment of individuak investors or that of newsletter writers, although the... More

http://education.fisherinvestments.com Investors are not all alike, and neither are their sentiments. We show that the sentiment of Wall Street strategists is unrelated to the sentiment of individuak investors or that of newsletter writers, although the sentiment of the last two groups is closely related. Sentiment can be uselful for tactical asset allocation. We found a negative relationship between the sentiment of each of these groups and future stock returns, and the relationship is statistically significant for Wall Street strategists and individual investors. Less