Category: Fear and Greed Index
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Is this correction and volatility normal?
With perfect hindsight, we now all know that January 26th was the recent price peak in the U.S. stock market. Since then, the S&P 500 has declined about -10% and the Dow Jones Industrial Average… Read More
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You want to be fearful when others are greedy?
“You want to be greedy when others are fearful. You want to be fearful when others are greedy. It’s that simple.… ” – Warren Buffett Investors are emotional and we can profit from it. Though… Read More
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Investor Optimism is Reaching Extreme
As it often does, the U.S. stock market trended the complete opposite of what market pundits expected after the election. Clearly, a Presidential election can be the blame for volatility we saw this year before the… Read More
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Extreme Fear is Now Driving Markets
On October 27th I wrote in Fear and Greed is Shifting and Models Don’t Avoid the Feelings that: The CNN Fear & Greed Index shows investor fear and greed shifted to Extreme Fear a month ago as the popular U.S. stock indexes dropped… Read More
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Fear and Greed is Shifting and Models Don’t Avoid the Feelings
Investors are driven by fear and greed. That same fear and greed drives market prices. It’s Economics 101 “Supply and Demand”. Greed drives demand, fear drives selling pressure. In fact, investors are driven by the fear… Read More
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Fear is Driving Stocks Down, or is Declining Stocks Driving Fear?
The last time I pointed out a short-term measure of extreme investor sentiment was August 4, see “Extreme Fear is Now the Return Driver“. At that time, popular stock indexes had declined -3% or more… Read More
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Trend Following Doesn’t Always Mean Crowd Following
“Trading has taught me not to take the conventional wisdom for granted. What money I made in trading is testimony to the fact that the majority is wrong a lot of the time. The vast majority is wrong… Read More
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Extreme Fear is Now the Return Driver
A professional investment adviser recently passed along some materials and asked for my opinion about a “tactical model” offered by another money manager. I was surprised that they expect great results from their model when… Read More