Deutsche Bank Research – Can AI Assess the Mood of Markets?

This report explores how artificial intelligence (AI) can be used to assess investor sentiment and the mood of financial markets.

It highlights key findings such as investors' tendency to be overly negative during market lows, the persistence of fear and overreaction despite improved rationality, and the detection of simultaneous euphoria and fear during market sell-offs. The report also discusses investor behavior patterns, including reliance on traditional cognitive biases and the emotional versus news-driven trading approaches.