Mr Market is a hypothetical investor that epitomises the market consensus and its susceptibility to the emotions of panic, euphoria and apathy. As such, Mr Market approaches investing as a reaction to his mood and sentiment rather than through fundamental analysis.
The term was first coined by Benjamin Graham in his book, The Intelligent Investor. Graham invented Mr Market to illustrate the perils of investment decision-making based on emotions rather than on reason. He believed, as we do, that even though sentiment causes prices to fluctuate on a daily basis, it is important to look at the bigger picture and focus on fundamentals because, in the long-term, nothing else matters in determining genuine value.