What are Market Sentiments?
- The entire attitude, or tone, that investors have toward the market is referred to as market sentiment.
- A bullish market mood is indicated by rising prices, whereas bearish market sentiment is shown by decreasing prices.
Understanding Market Sentiment
- Market sentiment, sometimes known as "investor sentiment," is influenced by technical indicators rather than fundamentals.
- Market sentiment is concerned with emotions and feelings, whereas fundamental value is concerned with company performance.
- Contrarians, or investors who tend to trade differently than the majority, rely on market sentiment when making decisions.