According to the Wind Information Platform, Deutsche Bank recently released a report analyzing the market sentiment in 2025 through its artificial intelligence system, dbLumina. The conclusion is straightforward and heart-wrenching: in the view of AI

The core implications of this report for investors can be summarized as follows:

Hard evidence of contrarian investing: AI confirms that investors show the most extreme "irrationality"(i.e. fear) at the lowest point of the market (April 2025). The reverse operation, which is to be greedy when others are afraid, proved to be the a

Deutsche Bank's research methodology is to input its daily market comments from January to October 2025 into its proprietary AI system dbLumina and request it to quantify the market sentiment. One key analysis is the 'Rationality/Fear Index', which h

The results showed that investors were in an irrational state for most of 2025. The index hit its lowest point in April when the market was in the abyss of panic selling. Ironically, AI accurately pointed out this irrationality - the S&P 500 index ha

The report also found an interesting trend: as time passes and market uncertainty decreases, investors' level of 'rationality' increases. This reveals a brutal truth: investors can only behave more rationally in calm and insignificant times; once unc

The Paradox of Emotions: 'Euphoria' after Panic Selling, Greed Vanishing during Rebounds

When dbLumina was tasked with analyzing four core emotions in the market - fear, greed, euphoria, and anxiety - the results were full of contradictions and paradoxes.

Throughout the year, the dominant emotion is anxiety, which persists regardless of market ups and downs.

However, the most critical discoveries occurred at the market bottom. AI analysis shows that the euphoria sentiment has only occurred once this year, precisely at the moments of the harshest market sell-off in April and May. The report speculates tha

Another abnormal phenomenon is that after the market crashed in April, despite the steady recovery of the stock market and reaching new highs, investors' greed has decreased while anxiety has increased instead. This completely goes against the ration

Cognitive Bias: Being Driven by Short-term Events

In 2025, investors will often say, 'We are operating in a whole new world of investment.' However, the analysis of AI has cruelly punctured this illusion.

The report pointed out that the two major cognitive biases that dominated the market this year are "recent bias" and "information availability bias." This means that what investors call a "new world strategy" simply relies on information they have se

AI divides the psychological evolution of investors in 2025 into three stages: being 'highly sensitive' to geopolitics and interest rates at the beginning of the year, 'increasing resilience' to trade wars in the middle of the year, and 'normalizing

Misunderstood Fear: AI More Optimistic than Human

AI also found that the focus of investors' attention does not fully match the actual fears that drive the market. For example, Deutsche Bank's comments mentioned the labor market 61 times throughout the year, but AI analysis showed that the labor mar

More compellingly, when comparing the emotional index generated by dbLumina with the net bullish data from the American Association of Individual Investors, a clear picture emerges: AI's emotional indicators are almost more optimistic than human inve

The rebound speed of AI sentiment index is much faster than that of the stock market itself after it touches the bottom, indicating that it can recover from short-term negative events faster. For investors, this means that when the market falls due t