The Predictive Power of Retail Investor Sentiment
The contrarian behavior of individual investors, as documented in the previous chapter, may present a link to stock return predictability as suggested by Kaniel, Saar, and Titman. They find that individual investors are contrarians implicitly providing liquidity to other market participants and that their behavior may predict returns.
KeywordsExcess Return Limit Order Individual Investor Portfolio Return Investor Sentiment
Unable to display preview. Download preview PDF.