Investor Sentiment

Investor sentiment refers to the overall attitude or mood of investors toward a particular security or financial market. It is a qualitative measure of how optimistic or pessimistic investors are about future market movements or the performance of specific investments. Investor sentiment can influence market trends and price movements, as it reflects collective behavior and psychological factors, rather than just fundamental or technical analysis. Positive investor sentiment often leads to increased buying activity and rising asset prices, while negative sentiment can result in selling pressure and declining prices. Sentiment can be gauged through various means, including surveys, market indicators (like the Volatility Index), and behavioral finance analysis.