Sentiment Metrics and Investor Demand

摘要: Recent work suggests that sentiment traders shift from safer to more speculative stocks when increases. Given the market clearing condition requires a buyer for every seller, we exploit these cross-sectional patterns and changes in share ownership test whether investor metrics capture institutional or individual investors’ demand shocks. In contrast theoretical assumptions common perceptions, find no evidence trading is responsible sentiment-induced shocks mispricing. If commonly used truly sentiment, then investors are whose drive prices value.