By Todd Shriber via Iris.xyz

 As has been widely documented, using social sentiment to glean insight about potential movements by individual stocks has been around almost as long as social media itself. Investors that are new to social sentiment and its applications may be surprised to learn that many of the early adopters of social sentiment in the financial markets were high level, sophisticated market participants, including hedge funds and institutional investors.

Today, there are expensive software programs used to mine social sentiment and high-fee hedge funds1 dedicated to social sentiment stock picking. In other words, investing using social sentiment is not a far-flung idea; it is widely accepted and happening every day.

Novice investors and those new to social sentiment likely have some assumptions about the strategy. Primarily, an investor that spends even just a few minutes on forums such StockTwits, Twitter or Yahoo! Finance is likely to come away thinking that social sentiment strategies are heavily rooted in growth and momentum stocks, such as Amazon.com Inc. (AMZN), Facebook Inc. (FB) or Netflix, Inc. (NFLX).

That assumption is not unreasonable and it is true that three aforementioned stocks command plenty of attention from the mainstream financial press as well as within social media circles. However, the BUZZ NextGen AI US Sentiment Leaders Index is factor and sector agnostic.

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