Investors experience roller coaster rides of emotions

Dusseldorf Investors have been experiencing a roller coaster ride of emotions since mid-May. Bad sentiment is followed by celebrations of gains, but a week later investors are dejected again.

This weekly ups and downs in investor sentiment is shown by the data from the Dax-Sentiment survey of the Handelsblatt. For the sentiment expert Stephan Heibel, who evaluates the survey, such violent mood swings are often a precursor to stronger price movements.

“We still cannot read the directional decision,” explains the sentiment expert. “All we can continue to state is that once a direction has been taken, the many mispositioned investors should then give it new fuel, which suggests a stronger movement.” That could be dramatic.