This paper examines whether the results supporting a recent story that sentiment-related overpricing is the source of a variety of asset pricing anomalies are still maintained after separating out the effect of macroeconomic conditions. We find that after adjusting for the effect of several macroeconomic variables in the proxy for investor sentiment, the results are no longer consistent with the sentimentrelated overpricing story. These results indicate that the anomalies are not necessarily attributed to sentiment-related overpricing but rather to macroeconomic conditions.