market sentiment


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Market Sentiment

A subjective measure of how investors are feeling about a security or market. Generally speaking, market sentiments are positive when stock prices are going up and negative when they are going down. Because feelings sometimes change more slowly than a market's underlying fundamentals, market sentiment helps explain why securities have a tendency to become either overvalued or undervalued. Some investors plan to make investment decisions in a way that disregards market sentiment, while others attempt to profit from it. See also: Crowd theory, Subjective probabilities, The Theory of Moral Sentiments.

market sentiment

The intuitive feeling of the investment community regarding the expected movement of the stock market. For example, if market sentiment is bullish, then most investors expect an upward move in the stock market.
References in periodicals archive ?
The second feature of market sentiment is Conservatism.
As market sentiment turned gloomy with eventual slowing oil demand, many investors halted investing in crude oil futures while others engaged in strong sell-offs.
retail sales and industrial production figures indicating that economic growth in the United States continued to be strong, as well as a rise in short-term dollar interest rates, had little positive impact on market sentiment.
Fitch Solutions' Risk and Performance Monitor is a report that gauges CDS market sentiment and spread movement among major companies and sovereigns throughout the world on a weekly basis.
The key factors determining market returns, including macroeconomic fundamentals, corporate profitability, overall market sentiment, liquidity in the market supported by local funds and foreign investors, are also good this year.
Buyers are holding themselves back for prices to fall and developers are sitting it out for the market sentiment get sunny.
In our view, market sentiment over the next couple of weeks will likely hinge on policy developments.
This is the first point about timing and market sentiment.
The markets could return to red next week as growth slowdown in China and the continuing debt crisis of the euro zone may weigh down the market sentiment.
THE FTSE 100 Index shed more than 2% yesterday as cautious economic forecasts from the Bank of England dealt a blow to market sentiment.
We believe an improvement in the macroeconomic outlook and in financial market sentiment will depend crucially on a recovery in oil prices, which, in turn, will probably depend on more lasting signs of a global economic recovery," the report said.
Abu Dhabi: Market sentiment is a peculiar thing: At one time markets shrug off any good news and sell on even a whisper of bullish news.