Webinar: Arbitraging News Sentiment Across Global Asset Classes, 21 Jan 2015, 830pm IST

Presenter: Richard Peterson; MarketPsych

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Webinar Abstract:

In our research on the new global equities Thomson Reuters MarketPsych Indices (TRMI), we have found that several sentiments and macroeconomic themes are markers of overreaction and, less so, underreaction across stocks in global markets. Both Canadian and American listed stocks are underpriced when high levels of media Anger are associated with them (Anger TRMI), with American stocks particularly overreacting when corporate leadership is mistrusted (ManagementTrust TRMI). Hong Kong stocks overreact to weekly news Sentiment (Sentiment TRMI). Singporean stocks overreact to Volatility (Volatiity TRMI). Some themes are common to global markets, and others are region-specific and may be based on regional media delivery and market structural factors. Cultural factors, as illuminated in experimental psychology research, may also be at work. The mispricings based on these indicators lend themselves to powerful rotating “information arbitrage” models. This talk will illuminate the key drivers of global stocks over various time horizons with reference to local explanatory variables. The talk will also highlight the ongoing forward-tested outperformance of rotational weekly and yearly models discussed in prior Unicom events.

Presenter CV:

Richard Peterson is CEO of MarketPsych Data which produces psychological and macroeconomic data derived from text analytics of news and social media. MarketPsych’s data is consumed by the world’s largest hedge funds. Dr. Peterson is an award-winning financial writer, an associate editor of the Journal of Behavioral Finance, has published widely in academia, and performed postdoctoral neuroeconomics research at Stanford University.



The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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