The Relative Sentiment Indicator: On the Asset Allocation Decisions of Institutional vs. Retail Investors
Financial Analysts Journal, 2010

In this study, Associate Professor Roger Edelen and co-authors Alan J. Marcus and Hassan Tehranian from Boston College measured retail investor sentiment relative to that of institutional investors by comparing their respective portfolio allocations to equity versus cash and fixed-income securities. The results suggest that fluctuations in retail sentiment are a primary driver of equity valuations for reasons unrelated to fundamentals.