Category: Investor Behavior Modification
Investor Behavior and Modification
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Employment, Coronavirus, it’s just the market, doing what it does…
It seems most people probably believe the news drives the stock market. I can see why, since the news headlines want to tell a story. We like a great story. We want to hear the… Read More
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Investor sentiment shifts
We’ve seen a notable shift in investor sentiment. AAII Sentiment Survey: Pessimism surged to its highest level in more than three months, while optimism plunged. Plus, this week’s special question asked AAII members to share… Read More
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Investor sentiment is dialed up with stock trends
I believe there are many factors that drive stock prices and one of them is investor sentiment. However, enthusiasm and panic can also reach extremes, which drives the opposite trend. When investors are extremely bullish… Read More
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You probably want to invest in stocks
You probably want to invest in stocks right now, I bet. If you are already invested in stocks, you probably want to be more aggressive in investing in stocks. Maybe it’s selling bonds to buy… Read More
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Keeping the mind right with investor sentiment indicators
Investors oscillate between the fear of missing out and the fear of losing money. After their portfolio trends up, they extrapolate recent gains into the future. After their portfolio falls, they extrapolate recent loss into… Read More
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A volatility expansion seems imminent
On November 16th, about two weeks ago, I shared an observation in “Periods of low volatility are often followed by volatility expansions” that implied and realized volatility had reached such a low level we should… Read More
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By and large, the stock market is correlated with consumer sentiment
I’ve shared some observations about investor sentiment this past week as sentient indicators and surveys have reached an extreme level of optimism. When sentiment reaches an extreme, we should prepare for it to swing the… Read More
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Can an optimistic investor sentiment measured by the AAII Investor Sentiment Survey trend higher?
Someone asked: Can an optimistic investor sentiment in AAII Investor Sentiment Survey trend higher? Another commented: The AAII Investor Sentiment Survey is just over its long term average, so it has room to run. Of… Read More
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Investor optimism is reaching extremes
Ok, so this isn’t anything new. I just discussed it last week in “Investor sentiment signals greed is driving stocks as the U.S. stock market reaches short term risk of a pullback.” The sentiment indicators keep… Read More
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What I learned about Semper Fi from former Tennessee Coach Phillip Fulmer
It may seem odd to hear a U.S. Marines Veteran who never played football under Phil Fulmer say he learned something about the Marine Corps motto “Semper Fi” from the old Tennessee coach. Afterall, Semper… Read More