Sentiment Indicator

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.

BREAKING DOWN '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. Macroeconomic Factor

    A factor that is pertinent to a broad economy at the regional ...
  2. Market Sentiment

    The overall attitude of investors toward a particular security ...
  3. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  4. Consumer Sentiment

    A statistical measurement and economic indicator of the overall ...
  5. Indicator

    Indicators are statistics used to measure current conditions ...
  6. Economic Conditions

    The state of the economy in a country or region. Economic conditions ...
Related Articles
  1. Fundamental Analysis

    4 Key Indicators That Move The Markets

    Find out what reports to watch in order to anticipate and react to market movements.
  2. Retirement

    Economic Indicators: Consumer Confidence Index (CCI)

    By Ryan Barnes Release Date: Last Tuesday of the month Release Time: 10am Eastern Standard Time Coverage: Previous ...
  3. Options & Futures

    Trading Around Key Options Indicators

    Learn the key economic indicators to help predict market movement.
  4. Economics

    Macroeconomics

    Macroeconomics studies the performance of an economy as a whole. While microeconomics focuses on the decisions, spending and performance of individuals or single businesses, macroeconomics focuses ...
  5. Professionals

    Economic Indicators

    FINRA Series 6 Exam Study Guide - Economic Indicators. This section deals with economic indicators: leading indicators, lagging indicators and coincident indicators.
  6. Professionals

    Economic Indicators

    Economic Indicators
  7. Retirement

    Consumer Confidence: A Killer Statistic

    The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.
  8. Professionals

    Economic Indicators

    There are various economic activities that one can look at to try to identify where the economy is in the business cycle. An individual can also use these economic indicators as a way to try ...
  9. Investing Basics

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  10. Professionals

    Economic Indicators

    NASAA Series 65: Section 15 Economic Indicators. In this section basic economic indicators and leading, coincident and lagging indicators.
RELATED FAQS
  1. What methods can be used to measure and profit from investor sentiment?

    First of all, when people talk about investor sentiment, or market sentiment, they are referring to the aggregate attitude ... Read Answer >>
  2. Do rising unemployment rates tend to increase or decrease investor sentiment and ...

    Discover whether rising unemployment rates tend to increase or decrease consumer confidence and investor sentiment. Unemployment ... Read Answer >>
  3. What is the difference between market indicators and economic indicators?

    Read about the differences between technical market indicators and general economic indicators, and learn how traders and ... Read Answer >>
  4. What economic indicators are important to consider when investing in the retail sector?

    Learn why the unemployment rate and Consumer Confidence Index are two of the best economic indicators when investing in the ... Read Answer >>
  5. What are leading, lagging and coincident indicators? What are they for?

    An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Answer >>
  6. What economic indicators are important for investing in the automotive sector?

    Discover the most important economic indicators when investing in the automotive sector: auto sales, unemployment and consumer ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center