Macro Minutes: Sentiment in Market Cycles

Key Points

  • Investor sentiment is cyclical, and its progression through the market cycle directly influences returns and leadership.
  • While Fisher Investments recognises that investor sentiment can never be fully quantified, we attempt to quantify sentiment's progression through the market cycle using a quantitative and qualitative approach.
  • We believe investor sentiment is currently late cycle, in the optimistic phase, but not yet euphoric.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.