Wednesday, January 20, 2016

Investor sentiment sends the wrong message - CNBC Prediction

Investor sentiment sends the wrong message: "So if you buy during a period of low sentiment, you can't expect with reasonable certainty to gain beyond the typical return for the market over a given time period.

The only statistical significance was if you bought stocks a month before investors' sentiment was this low and sold the day the survey came out. In that case, you'd be down a median of 4.5 percent. That means the only thing investor sentiment is actually showing is that the market has been performing poorly and you shouldn't take it as a sign to sell."



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