Sentiment Indicator

AAA

DEFINITION of 'Sentiment Indicator'

A graphical or numerical indicator designed to show how a group feels about the market, business environment or other factor. A sentiment indicator seeks to quantify how various factors, such as unemployment, inflation, macroeconomic conditions or politics influence future behavior.

INVESTOPEDIA EXPLAINS 'Sentiment Indicator'

Sentiment indicators can be used by investors to see how optimistic or pessimistic people are to current market conditions. For example, a consumer sentiment index that shows pessimism may make companies less likely to stock up on inventory, because they may fear that consumers will not spend.

RELATED TERMS
  1. NY Empire State Index

    A seasonally adjusted index that tracks the results of the Empire ...
  2. Mutual Fund Cash Level

    The percentage of a mutual fund's total assets that are currently ...
  3. Confirmation

    1. The occurrence of two or more indicators corresponding with ...
  4. Bear

    An investor who believes that a particular security or market ...
  5. Member Short-Sales Ratio

    A ratio comparing the number of short sales transacted on behalf ...
  6. Mutual Fund Liquidity Ratio

    A ratio published monthly by the Investment Company Institute ...
Related Articles
  1. Investors Intelligence Sentiment Index
    Technical Indicators

    Investors Intelligence Sentiment Index

  2. The Flaws Of Using Mass Sentiment To ...
    Active Trading Fundamentals

    The Flaws Of Using Mass Sentiment To ...

  3. 4 Key Indicators That Move The Markets
    Fundamental Analysis

    4 Key Indicators That Move The Markets

  4. Make Money With The Consumer Cyclical ...
    Economics

    Make Money With The Consumer Cyclical ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center