posted on 06-06-2019
Market Sentiment
Updated October 1, 2019
What it is:
Market sentiment is the general feeling about the climate of the market as expressed by the direction of market prices.
How it works/Example:
Why it matters:
The nature of market psychology suggests that any given trend may be more indicative of market sentiment than of fundamental gains or losses in the value of stocks.
As a result, market prices are not necessarily indicative of a stock's fundamental value.