One way to try and assess which way stock prices will move is via a sentiment indicator.
One way to try and assess which way stock prices will move is via a sentiment indicator.
This measures the extent to which a group of investors is bullish or bearish via a survey. For example a survey may find out that 55% of investor are bullish, 40% are bearish and 5% are neutral (neither). This suggests most investors expect share prices to rise. It is worth noting that a contrarian investor may see very strongly bullish sentiment as a sell signal as when too many people all hold this view share prices can become toppy.
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