Tag: Investor Sentiment
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Nothing Changes Investor Enthusiasm Like a Price Trend
Investor sentiment is trend following. Investors get more bullish as stock prices trend up, and more bearish as the stock market trends down. Read More
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Declining (Low) Volatility = Rising (High) Complacency
When we speak of trends, we want to recognize a trend can be rising or declining, high or low. These things are subjective, because there is infinite ways to define the direction of a trend,… Read More
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Investors are Complacent
Implied volatility, the amount of “insurance premium” implied by the price of options, continues to suggest that investors are becoming very complacent. When the VIX is high or rising, it says the market expects the… Read More
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Investor Sentiment Reaches Extreme Fear
As I said in “Fear is the Current Return Driver“, investor sentiment has turned to “Fear” since the stock and bond markets have declined recently. Investors tend to get optimistic (and greedy) after prices have gone… Read More
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Fear is the Current Return Driver
As I said in “Investor Sentiment is Bearish“, I’ll point out my observations about investor sentiment when it gets to an extreme and asymmetrically skewed to fear or greed. I pointed out the most recent AAII… Read More