You have alluded to poor "Sentiment" as an important factor in poor performance of certain stocks. (CSU & it's off springs plus SaaS companies)
What kind of metrics and tools that you use to measure "Sentiment"?
Price or volume or Technical indicators or any other tools from proprietary services?
Many thanks.
That is sort of the problem. Sentiment cannot really be measured in any typical way. Essentially, it means stocks are going down (or up) without a significant change in fundamentals. In the software space right now, not that many companies have actually reported weak results, and even fewer have discussed the AI threat. But that has not prevented more than $1 trillion in market value being destroyed by AI fears. We do look at price gaps down and volume to try and get a sense of 'capitulation' but what we are seeing right now is more of a steady 'just exit the sector' scenario. Some companies will certainly be hurt by AI. But right now investors are assuming every software company is going to go bankrupt. This is very much not likely to be the case, but right now fear is far more powerful than fundamentals and low valuations.