Oct 6, 2013
Tracking the Investment Climate: Read the Newspaper
Her study found sentiment peaked in 2004. Which was two years before actual prices peaked in 2006. The same pattern held with busts. Backing up her findings were patterns of homebuyer expectations in surveys by Case-Shiller and the U-M's Survey of Consumers. Soo combined prior work from other studies in behavioral finance and computer science to develop this index and empirical test. Text analyses that captured the qualitative tone of news coverage had been used in the past to measure stock market sentiment. When her fundamentals did not jibe, she accounted for it in other ways.