Investor Sentiment

Investor sentiment refers to the overall attitude or mood of investors toward a particular market, asset class, or investment at a given time. It is often driven by emotions, news events, and market trends, rather than fundamental analysis. Positive sentiment can lead to increased buying, driving prices higher, while negative sentiment can cause selling and price declines. Investor sentiment is measured through surveys, market indicators, and trading volume.

Example

During a stock market rally, investor sentiment is generally positive, leading to increased demand for stocks and pushing prices higher.