Understanding Market Mood

Financial Advisors with DNA packages who want to understand the Market Mood tool.


Common Causes/Issues:  

What is Market Mood? 

How do I use Market Mood with my clients? 

When should I be looking at Market Mood? 


Solution Overview: 

Market Mood measures the current level of market fear or exuberance for each investor based on real-time market indices data or client’s specific portfolios. This tool provides easy-to-understand behavioral management tips and action items for investment advisors (and Fintech applications) to behaviorally manage or “nudge” their clients, in a way that is tailored to each client via automated customization. 


Video Walkthrough: 




Research affirms that investment advisors bring the most value to clients by stopping them from making impulsive decisions that change investment positions at the wrong time. Our own research tells us that, in typical market conditions, predicting the mood of clients can help advisors using the Financial DNA packages and DNA API bring an additional 150 bps to investors; however, in adverse volatility, this can increase to higher amounts.  The trailing 15-day stock market performance was selected because research shows that individuals have a tendency to react more to sudden declines and increases in the market. 


The Current Mood of the Market: 

Market Mood is the real-time measurement of how the average investor feels about the market, based on the S&P 500, powered by the DNA Behavior system. Revisit your dashboard or your client’s page to see how the mood of the average investor fluctuates as the markets change. 


Communicate the value of Market Mood to clients: 

Investors can receive their own market mood prediction when they complete their discovery when the process is deployed from one of our Financial DNA subscriptions. 


The Eight Market Moods: 

There are eight different moods that clients can be tagged to. These moods are represented with four colors to easily demonstrate the level of urgency for financial services teams. 

Moods, when investment returns are positive: 
– Comfortable 
– Exuberant 
– Watchful 
– Apprehensive 

Moods, when investment returns are negative: 
– Comfortable 
– Opportunistic 
– Concerned 
– Fearful 

Parameters used to predict Market Mood 

There are four parameters taken into consideration when determining a client’s market mood: 

  1. Trailing 15-day stock market performance of S&P 500 
  2. Natural Behavior Unique Style 
  3. Two strongest behavioral biases of the client 
  4. Natural behavior risk group for client 


When Market Mood data is refreshed: 

We have timed Market Mood based on your local computer time, so regardless of where are you are in the 

world, Market Mood will refresh with the latest market close data (from the previous close of the United States 

stock market exchanges- in NY, New York). 

Regular market hours are 9:30 a.m. to 4 p.m. Eastern Time. Please note that there is no trading on market 

holidays. Click here for a listing of the market holidays. 


Get the Market Mood brochure here: 



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