Lighthouse Analytics is a quantitative research firm dedicated to understanding the divergence between investor sentiment and actual market behavior. We study the gap between what markets say and what they do—analyzing the disconnect between self-reported sentiment and the preferences revealed by actual positioning and capital flows. Our research treats sentiment not as a simple bullish-or-bearish score, but as a structured, multi-dimensional signal that captures the complexity of market psychology.

Grounded in mechanistic interpretability, a frontier branch of AI research, we examine the internal structure of large language models to understand how people collectively process fear, uncertainty, and expectation. Because these models are trained on vast amounts of human writing, their internal representations offer a structured map of human cognition that we apply to financial markets. Currently in an active research and development phase, we are pioneering new methodologies to decode market behavior and provide investors with deeper insights into true market positioning.