RT Journal Article
SR Electronic
T1 Sentiment Issues in Stock Prices and Mutual Funds
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 43
OP 49
DO 10.3905/jwm.2015.17.4.043
VO 17
IS 4
A1 John A. Haslem
YR 2015
UL https://pm-research.com/content/17/4/43.abstract
AB Baker and Wurgler [2007] take a “top down” approach to behavioral finance and the stock market. Investor sentiment is taken to be exogenous, and the focus is on its empirical effects. Sentiment is measurable and its waves have clearly discernible, important, and regular effects on individual firms and the stock market as a whole. Stocks that are hardest to arbitrage or value are the ones most affected by sentiment. Other studies discussed in the article relate to aspects of investor sentiment and sentiment indexes, seeking to help with forecasting stock returns and trade volume and providing a rigorous analysis of the predictive power of investor sentiment.TOPICS: Mutual funds/passive investing/indexing, in portfolio management, big data/machine learning, performance measurement