Understanding Investor Sentiment through Financial Data Analysis

Behavioral finance is a field of study that examines how psychological factors and emotions influence the financial decisions of investors and the subsequent market outcomes. Traditional finance theory assumes that investors are rational and make decisions based on all available information, aiming to maximize their utility or wealth. However, behavioral finance recognizes that human beings are not always rational actors. Instead, they are prone to biases, heuristics, and emotional responses that can impact their investment choices.

Understanding Investor Sentiment through Financial Data Analysis