Tag: Investor sentiment

The markets are driven by sentiment. Investor sentiment is made up of the emotions of people who are trading the markets. Sentiment can change at any time, via new information. Some times the information is expected, and sometimes it comes as a surprise. The key to dealing with either expected or unexpected news is to determine whether your risk profile has changed and how you will handle the new data. New Information The price of a security, exchange rate or any asset is valued based on all the available information. When new information is released, the price of an asset might change to reflect that new information. For example, the value of Apple might change after the company releases its financial results. If better than expected guidance for the company is provided, the stock p...