European Union Sentix Investor Confidence

sentix conducts a weekly standardized survey among the interested parties who have voluntarily registered for it on the expectations for the next 6 months of the stock indices, the markets of bonds, foreign exchange and commodities and changing current topics. Respondents usually have four answers to express their price expectations: bullish, neutral, bearish and no opinion.

From these survey results, sentix then calculates and publishes various indices, including the economic index for Euro zone. The sentiment is calculated by dividing the difference of bull - bears by the number of survey participants.

sentix itself suggests the use of its indices for short and medium-term investment decisions. Whereby sentix considers it more sensible to act against the trend or the mood if the value of the sentiment reaches extreme values. As a "rule of thumb", they state, a value above 0.4, equivalent to 40% more bulls than bears, is considered a sign of imminent weakening, and -0.3, which means 30 more bears than bulls for a possible price increase. However, slightly different values apply to different markets. An analysis of the divergences can also be helpful, i.e. if a new high in prices is not accompanied by a new high in sentiment, this could also indicate a trend reversal.