Investor Sentiment Impacts Stock Prices: How to Maximize Returns.
Investors are not always rational, and their emotions can affect stock prices. By studying how investor sentiment influences financial markets, researchers found that taking a contrarian investment strategy can lead to higher returns. Small capital stocks are riskier but can offer more rewards, and undervalued stocks may provide better returns. This suggests that understanding investor sentiment can help investors make smarter decisions and potentially earn more money in the stock market.