MARKETPSYCH
Powering minds over markets
home-banner

AI-Driven Financial Foresight

Empowering the Financial Industry with Data Feeds, Predictive Analytics, and Advanced NLP Solutions

Our Process
home-banner
Distilling the impact of media on markets
With accessible datafeeds, applications, and tools
1
Investors form opinions about assets based on news, research, corporate documents, and online discussions
2
Media Outlets such as traditional news and online social media amplify such opinions, creating feedback loops
3
MarketPsych’s NLP engines provide AI-assisted analytics across millions of media articles, documents, and online posts daily
4
Datasets are created by aggregating topic and sentiment analytics data on millions of entities across time frames
5
Workflows supported include alpha generation, research, ESG, monitoring, and risk management via APIs and python notebooks
6
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
deutsche-bank.png
agf.png
opti-risk.png
lseg.png
axa.png
ht-media-group.png
hull.png
finra.png
Academic Papers Published With Our Data
economic_letters.png
portfolio.png
ssrn.png
ifw.png
the_journal_of_behavioral_finance.png
the_journal_of_finance.png
journal_of_banking_and_finance.png
physica.png
Latest Developments
NEWS
May 21, 2024

Looking forward to seeing our friends at BattleFin NYC on May 21-22nd!

NEWS
March 21, 2024

Join our next webinar: "Demystifying the Use of LLMs in Finance". Registration: https://lnkd.in/eRurwPbm

 

NEWS
March 20, 2024

Please stop by our booth at BattleFin Singapore March 20-21st where we'll showcase our AI-based products.

NEWS
January 24, 2024

Looking forward to seeing our friends at BattleFin in Miami Jan 24-26th 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
Recent Blog Posts
This is the Most Positive Earnings Season Since 2002 (according to earnings call sentiment)
This is the Most Positive Earnings Season Since 2002 (according to earnings call sentiment)
Better-than-expected results have appeared more frequently than not in this earnings season. LSEG (London Stock Exchange Group) Workspace data shows that about 56% of companies have beaten the mean estimate. Such strong performances have been reflected in the earnings conference calls. In the plot below, we compare the average financial sentiment (from the LSEG MarketPsych Transcript Analytics) of all available earnings calls in the quarter until today with that of the same period in previous years. This is looking to be the most positive sentiment earnings season since the start of the data in 2002. Year to date, the FTSE All-World Index is up 8%, which is above average for the same period in previous years, although not abnormally higher.
May 16, 2024
U.S. Earnings Call Sentiment Reaches a 20-year High
U.S. Earnings Call Sentiment Reaches a 20-year High
Over the past 20 years corporate sentiment on earning scalls has been increasing (blue line) alongside stock prices (Russell 2000, IWV, black line). Our research on quantile performance indicates that highly positive sentiment calls precedes stock price hashtag#outperformance (a post on that effect coming soon). But why is higher call sentiment occurring? Could it be that consistently improving corporate fundamentals are reflected in more positive call sentiment? Are analysts becoming more polite (or maybe only the friendliest are selected to ask questions)? Or is it a result of executive communication coaching to avoid gaffes and add more positive polish? Or maybe all of the above…
May 15, 2024
How High CEO Optimism Drives Stock Outperformance
How High CEO Optimism Drives Stock Outperformance
Public US-based companies led by highly optimistic CEOs have outperformed their peers over the last two decades. Our preliminary analysis, using the LSEG (London Stock Exchange Group) MarketPsych Transcripts Analytics data feed, reveals that companies helmed by the top 5% of CEOs, in terms of optimism levels during Earnings Calls, exceeded their peers' future stock performance by an average of 0.5% per month. The optimism metric in the data feed is one of 13 emotional dimensions evaluated in each sentence of the earnings calls. It utilises an LLM-based architecture designed to assess the probability of speakers conveying specific emotions.
May 15, 2024
In Earnings Calls: Top 10 Most Optimistic U.S. CEOs
In Earnings Calls: Top 10 Most Optimistic U.S. CEOs
The LSEG MarketPsych Transcripts Analytics offers detailed sentiment analysis on corporate communications, including quarterly earnings calls. It analyses each sentence to produce insights on topics, sentiment levels, and the probability of several emotions, including optimism. Our initial studies using this data suggest a positive correlation between CEO optimism during earnings calls and relative stock price performance in the following months. With hundreds of earnings calls for Q1 2024 already underway, we present a partial rank of the top 10 CEOs from Russell 3000 companies based on their optimism during the current earnings season. As of now, Mr. Olivier Le Peuch, CEO & Director of Schlumberger, has had the most optimistic discourse. While Optimism is depicted in the underlying blue bars, the superimposed black bars depict the financial sentiment level of these CEOs. The optimism is higher than sentiment for every CEO. Notable disparities between the optimism and sentiment levels, such as those observed in the case of Ms. Joanna Geraghty, CEO & Director of JetBlue Airways, could also serve as valuable features for future stock price modelling.
May 08, 2024
Optimism on Full Self-driving Near Historical Peak
Optimism on Full Self-driving Near Historical Peak
"And I think it might be the biggest asset value appreciation in history when that day happens when you can do unsupervised full self-driving."~Elon Musk on Tesla's earnings call yesterday. The optimism on full self-driving is near its historical peak, as depicted in the image below. The image shows the average sentiment sentences referencing "FSD", "self driving" and "self-driving" (red line) in Tesla's earnings calls since 2019. Tesla's stock price is in black.
April 29, 2024
Expectations of Interest Rate Moves Drive Mid-term Stock Performance
Expectations of Interest Rate Moves Drive Mid-term Stock Performance
Interest Rate expectations drive U.S. stocks in an inverse relationship (rates up => stocks down). As Warren Buffett famously said, "Interest rates are to asset prices … like gravity is to the apple." Expectations often drive financial behavior. Since the monthly CPI came in above expectations last week, some economists are now expecting the Fed to raise before they lower rates in 2024-2025. The chart below shows the rally in the Russell 1000 (top 1000 US stocks) since Oct 2023 as expectations for rates fell. The blue shading was placed between a 90-day and a 200-day average of interest rate forecasts derived from natural language processing (NLP) on thousands of news and social media sources discussing U.S. interest rates (sentiment analysis). Note the stock rally was inversely correlated with rates expectations since October. As the narrative shifts and forecasts for rates move higher, we could see more air coming out of stocks until more assuring CPI numbers come in.
April 22, 2024
Bitcoin Sentiment Ahead of Halving
Bitcoin Sentiment Ahead of Halving
The overall media sentiment about bitcoin is in the high end of its range. According to academic research on social media and daily asset prices, "Sentiment predicts positive next-day returns, but attention predicts negative next-day returns." https://lnkd.in/g8GgXdHX. We see a similar effect at monthly and longer horizons for many assets (stocks, currencies, etc...). News media attention to bitcoin lately has been very high. The Bitcoin Halving is likely to occur in late April. From a psychological perspective, the increasing scarcity of bitcoin increases its attractiveness. Yet the last halving was May 11, 2020, and previously one occurred in July 2016. Before and after the past halvings, there was no clear price impact of the events. I've noticed in recent conversations at finance events that the launch of ETFs (specifically the SEC approval) has legitimized Bitcoin in the eyes of conservative financial institutions and family offices. Many are discussing new bitcoin products and investments. Surprisingly to me, the tradfi adoption of bitcoin as a store of value seems to be in early stages. So is Bitcoin peaking? What does the halving mean? It's hard to know in the short term: sentiment is higher (and vulnerable to a fall). The high overall attention implies downward pressure in future months. Longer term (years) the momentum is still positive.
April 10, 2024
Largest Cryptocurrencies Sentiment Heatmap: March 2024
Largest Cryptocurrencies Sentiment Heatmap: March 2024
Historically social media sentiment about individual cryptocurrencies tends to drive their prices higher. The highest sentiment large coins in March 2024 so far are #DOT #ARBITRUM #MATIC #AVAX #BNB.
March 13, 2024
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
Hiring frame