MARKETPSYCH
Powering minds over markets
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AI-Driven Financial Foresight

Empowering the Financial Industry with Market Insights, Predictive Analytics, and Advanced NLP Solutions

Our Process
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Distilling the impact of media on markets
With accessible datafeeds, applications, and tools
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Investors form opinions about assets based on news, research, corporate documents, and online discussions
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Media Outlets such as traditional news and online social media amplify such opinions, creating feedback loops
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MarketPsych’s NLP engines provide AI-assisted analytics across millions of media articles, documents, and online posts daily
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Datasets are created by aggregating topic and sentiment analytics data on millions of entities across time frames
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Workflows supported include alpha generation, research, ESG, monitoring, and risk management via APIs and python notebooks
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Web App makes workflows and content easily accessible with visualizations, web tools, code samples, and research reports
Our Mission
Empowering Finance through NLP and AI Solutions
What We Do
Since 2004 MarketPsych has been leading research into natural language processing (NLP) and AI for financial applications. We are known for producing high-quality, rigorous, and point-in-time sentiment data. And we do much more…

We help organizations extract value and insights from large amounts of text - quickly and easily. Our products enhance client returns, reduce risk, and unearth key insights. Our clients are among the most sophisticated investment funds, banks, research firms, and agencies globally.

Our analytics identify and publish thousands of events, topics, perceptions, and sentiments in the information flow about millions of entities and assets. We map assets point in time across all common identifiers.
Our Team
MarketPsych is a contraction of Market Psychology. Our team’s background is rooted in quantitative finance, behavioral economics, and technology. We share a passion for advancing AI technology, finance research, and having a positive impact.

As quantitative analysts, our founders identified a hole in traditional financial data. If information flow moved markets, where could a quant find reliable data reflecting the beliefs, expectations, and events moving markets - market psychology? Over the next 20 years our team endeavored to produce the most reliable and robust sentiment and event data from unstructured text.
Check out our books on behavioral markets
Clients with Public Testimonials
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Academic Papers Published With Our Data
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Latest Developments
NEWS
January 24, 2024

Looking forward to seeing our friends at BattleFin in Miami Jan 24-26th and Singapore March 20-21st where we'll be showing off our new & upcoming products!

NEWS
November 09, 2023

We're presenting at The International Conference on Data Science in Finance: The ESG Data Analytics Forum, “The Impacts of ESG Controversies" in Vienna, Austria.

PRESS
November 01, 2023
Swissquote: “Richard L. Peterson: Psychology and finance all in one Press Link
NEWS
October 13, 2023

We'll be at the Future of Wealth Forum Nov 1-3rd in Sea Island, Georgia.

NEWS
September 25, 2023

Looking forward to seeing our UK friends September 26-27 at BattleFin London!

PRESS
July 27, 2023
Refinitiv.com: “Reshaping text analytics – is AI a game changer for analysts? Press Link
Recent Blog Posts
Top Robotic Initiatives Companies
Top Robotic Initiatives Companies
In our earlier post we identified #Robotics as the industry with the most positive media sentiment in 2023 (and 2022).Attached is a list of the companies most associated with Robotic initiatives or products in the past two months. Based on our #quant research, the valuations of such companies tend to (on average) outperform when associated with higher media sentiment (as they have been).  
January 02, 2024
Positive Industries in 2023
Positive Industries in 2023
Every year we look at the most positively viewed industries in global #businessnews and #socialmedia.For 2023 we see #Robotics on top (as it was in 2022) followed by #RenewableEnergy, #Tourism, #Fintech, and #Infrastructure.Further down the list the industries with a country code after them indicate the industry is primarily favored in one region (US = United States, CN = China).The stock prices of the highest #sentiment companies and industries on average outperform over the following year.In 2022 AI was #2 but fell to #33 based on legal and social challenges.We wish you all a happy, healthy, and prosperous 2024! #happynewyear  
January 01, 2024
Bitcoin Momentum
Bitcoin Momentum
#Bitcoin sentiment has been at highs and the bull keeps running - a phenomenon we call sentiment momentum. In this paper https://lnkd.in/gasgp9BQ we show that across thousands of global stocks, sentiment precedes price momentum (using Granger Causality Analysis), and the chart below illlustrates that effect in #BTC.In the chart, the black price bars are BTC/USD and the smooth lines are two moving averages of #sentiment (30 day and 90 day superimposed). The red shading indicates negative sentiment pressure (the 30-day sentiment is lower than 90-day), and blue shading indicates more positive sentiment.Social sentiment on BTC is the highest since 2020, and news sentiment is the highest since 2018. When sentiment falls substantially, we're likely to see a price correction, but that isn't happening yet.  
December 11, 2023
Weight Loss Drugs Sentiment
Weight Loss Drugs Sentiment
#Antidiabetes drugs (#glp1 agonists) have been in the news not only for success in treating diabetes, but also for the shortages caused by off-label uses for #weightloss, #addictivedisorders, and #longetivity.#MorganStanley sees the drugs decreasing food industry profits and dramatically impacting stock prices, with an 80% gap emerging since Jan 2023 between stocks of companies benefiting from these medicines (largely #pharma) vs those being impacted by these medicines (retail and fast food companies). Here is a #foodindustry perspective: https://lnkd.in/g5smxCGj. Big picture, these medicines may substantially reshape US society.We get a lot of questions about which of these medicines is winning in the public sentiment space, and our analysis shows #Zepbound (daily green line below) with higher media sentiment than #Ozempic (blue line below). Zepbound was the last GLP1 medicine to be released, about 10 days ago. We'll post more as the situation evolves...  
November 28, 2023
Investment Opportunities using Emotions paper
Investment Opportunities using Emotions paper
This recent academic paper - Investment Opportunities Offered by Investor Emotions - (https://lnkd.in/gTg4F9qu) implements a practical portfolio construction strategy built on existing research that identify investor emotions as precipitative of post-earnings excess returns.Even accounting for steep transaction costs, the authors demonstrate a long-short strategy yielding an 18% annualized return that has low or insignificant correlations to all FF5 factors using #Refinitiv #MarketPsych data.
October 20, 2023
Portfolio Allocation using RMA
Portfolio Allocation using RMA
A recent paper in the #JournalofFinance investigates how investors approach their portfolio allocation. The authors find evidence for an investor heuristic called naive buying diversification (NBD), where investors allocate 1/N of their money in the N assets bought on that day (instead of considering their portfolio composition as a whole). The authors used our MarketPsych Analytics ("TRMI" in the paper) to test an explanatory hypothesis for such behavior. Their analysis provides support for a stock-picking explanation: NBD is more common when investors buy similar stocks, such as stocks with similar buzz (amount of media chatter). The findings could "have implications for the design of contribution-based saving plans, such as pension schemes". https://lnkd.in/da7m7BSdThe researchers combined datasets of #Barclays brokerage transactions (and demographic data), LSEG (London Stock Exchange Group) price data, and #MarketPsych news data.The below plot shows the function by which investors are more biased to invest in the similar buzz stocks. Lower buzz difference between two stocks (one proxy for similarity) is correlated with higher likelihood of them being purchased using the NBD pattern.
October 13, 2023
China Residential Property
China Residential Property
#China's 3rd largest residential real estate developer #CountryGardenHoldings Co Ltd defaulted on its bonds this month. Note that our #Gloom score for the company was already triggering well in advance (image attached).The past two weeks distress in the Chinese financial system are creating a #RiskOff attitude in global markets.Per #Reuters: "China's property sector ... is the largest asset class in the world, with an estimated market value of around $62 trillion... The next thing to watch is how regional governments, many of which rely on real estate revenue, manage their debt."On top of commercial (and multifamily) real estate distress in the US, we may see a #HardLanding from #MonetaryTightening after all. (Markets have been betting on a soft landing until this week).  
August 23, 2023
AI Trading: What Could Possibly Go Wrong...
AI Trading: What Could Possibly Go Wrong...
The popular press is abuzz with articles about AI's transformation of investing, financial research and analysis, and stock market forecasting. At MarketPsych we work in the field of AI with large language models (LLMs) including chatGPT, and in today’s newsletter we explain some LLM trading basics as well as our own successful AI agent designed for stock price forecasting. To illustrate the value of AI in investing, we'll start with the human weaknesses it is designed to exploit… Investing on fear AI vs AGI chatGPT is a non-sentient model (it's not conscious), and there is a big gap between it and the type of artificial general intelligence (AGI) described in the Fear Index. As physicist David Deutsch noted: “AI [artificial intelligence] has nothing to do with AGI [artificial general intelligence]. It’s a completely different technology, and it is in many ways the opposite of AGI … An AGI can do anything, whereas an AI can only do the narrow thing that it’s supposed to do.”
July 16, 2023
We Are Hiring!
Interested in NLP, AI or Quant Research? Our team is continually seeking talent with the same interests as us!
Contact Us Now
NLP Engineer
Develop, implement, and optimise NLP systems for sentiment analysis and classification tasks to monitor market moods and trends
Python Developer
Create tools and solutions that drive data analysis and research, client services and infrastructure support
System Administrator
Monitor and optimize infrastructure, improve systems robustness across multiple servers and services
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