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Alternative Data: Reddit Sentiment Reflects Optimism

Reddit-Based Sentiment

We have built a proprietary database of comments from the WallStreetBets sub-reddit extending back over two years. In this research note, we update our short-term market indicator[1] based on aggregate sentiment toward the S&P 500.

The short-term market indicator proxies for retail sentiment in the market. It has shown to be an effective contra-signal over short-term holding periods. We construct the indicator by assigning a sentiment score to each comment about the S&am...

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