Posted: 11 Aug 2010
Date Written: August 11, 2010
The sentiment of retail investors relative to that of institutional investors was measured by comparing their respective portfolio allocations to equity versus cash and fixed-income securities. The results suggest that fluctuations in retail sentiment are a primary driver of equity valuations for reasons unrelated to fundamentals.
Keywords: Portfolio Management, Asset Allocation, Equity Portfolio Management Strategies, Equity Investments, Equity Market Valuation and Return Analysis
Suggested Citation: Suggested Citation
Edelen, Roger M. and Marcus, Alan J. and Tehranian, Hassan, Relative Sentiment and Stock Returns (August 11, 2010). Financial Analysts Journal, Vol. 66, No. 4, pp. 20-32, 2010. Available at SSRN: https://ssrn.com/abstract=1656962