This paper examines the relationship between net aggregate equity fund flow and investor sentiment using weekly flow data. Using sentiment indicators from the American Association of Individual Investors and Investors Intelligence, I find that net aggregate equity fund flow in the current week...

In considering a long-term investment in a common stock, an investor wants an estimate of the stock's long-run risk premia (and thus the long-run expected returns). Similarly, in evaluating a capital investment project, a firm seeks a reliable estimate of the required return on the proposed...