We all often hear about the importance of sentiment in investing. But how to use it can be elusive. This week we are joined by someone who has done the empirical work and developed models that use sentiment to build real world investment strategies. 
We speak with Ray Micaletti of Relative Sentiment Technologies. Ray has done extensive research on the use of relative sentiment in investment strategies and has published several research papers on the topic, including "Want Smart Beta? Follow the Smart Money: Market and Factor Timing Using Relative Sentiment". He also runs an ETF using his strategies. 
We discuss what relative sentiment is and why it works and look at it through the framework commonly used to evaluate investment factors to see how it holds up. We also cover how sentiment is measured, using sentiment in bonds and gold and a lot more. 
We hope you enjoy the discussion. 
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