In January, 2021, retail investors - Robinhood army - came together on Reddit's Wall Street Bets group and other social media outlets to take down prominent hedge funds by causing a short squeeze and pushing up GameStop's stock price by 400% in just one week¹. This amount of volatility is not normal, the retail investors were urged on by the Reddit group to punish hedge funds that had taken an outsized short bet against GameStop. Tracking market sentiment can be a powerful tool for investors because understanding the mood of where the market is going can allow one to capitalize from the changing direction. Combining market sentiment with market fundamental will result in more sound investments. I was fascinated by the showdown between Wall Street and Reddit and inspired to understand how machine learning (ML) can be used to track market sentiment.
Jul-22-2021, 22:20:53 GMT