Early Bird Index: Investor Sentiment

The Early Bird Index is 74.52 for July 19, 2024.

What is the Early Bird Index?

The Early Bird Index is an extensive measurement to gauge the prevailing sentiment and overall outlook of investors in the market

Major stock market indexes are often used to measure the state of investing, but they don't tell the full story of what is currently driving the market.

By tracking a wide range of factors, including stock surveys and alternative investments, the Early Bird Index helps investors understand the mood of the market.

What do the numbers mean?

Here's how the Early Bird Index number might be interrupted.

  • A reading of 75 to 100: An extremely favorable environment for investors.

  • A reading of 50 to 74: A slightly favorable environment for investors.

  • A reading of 25 to 49: A slightly unfavorable environment for investors.

  • A reading of 0 to 24: An extremely unfavorable environment for investors.

How does the Early Bird Index work?

Represented as a single score on investor confidence, the Early Bird Index provides a holistic view of investor sentiment.

It is a single number between 0 and 100. The higher the number, the more optimistic investors should be about the market. The lower the number, the more pessimistic investors should be.

Think of the Early Bird Index as a helpful barometer that provides a current temperature check on how opportunistic investors should be.

How is the Early Bird Index assembled?

The Early Bird Index collects data from numerous market factors and weighs each factor based on a formula:

  • Social Sentiment (30%): Indicators that track social sentiment offer clarity on overall investor confidence. In this case, the Early Bird Index tracks funds and surveys to see how bullish or bearish investors currently are.

  • Volatility (28%): Volatility is a great factor that investors should monitor because it can show how rapid or unpredictable stock market price changes are.

  • Momentum (15%): Unlike traditional barometers that only measure price levels, the Early Bird Index measures momentum for the top stock market indexes in the United States.

  • Major Stock Market Indices (12%): The relationship between current stock market indices and historical performance is included in the calculation.

  • Alternative Investments (12%): In addition to tracking the stock market, the Early Bird Index also takes into account alternative investments. The calculations include the price changes for gold, bonds, and cryptocurrency.

  • Economic Data (3%): Finally, some recent economic data is in the calculation.

Is the Early Bird Index free?

Yes, it is 100% free.

How should investors use the Early Bird Index?

Investors can turn to the Early Bird Index to understand the prevailing mood of investors and to make more informed decisions.

Higher numbers on the Early Bird Index indicate that current market conditions are becoming more promising. A lower number means that the current market conditions have deteriorated.

When is the Early Bird Index updated?

We update it each day the market is open.

If you have any questions or comments about the Early Bird Index, please contact [email protected].