Such a unique way to measure the state of our economy & markets and the on-going shifts in perception of those 2 things.
Fear and Greed Index
I encourage you to take a look at this thing!
CNN's Fear and Greed Index (FGI) measures investor emotions of fear and greed on a daily, weekly, monthly, and yearly basis. Too much fear can drive stock prices too low, while greed can raise prices too high. This index can serve as a tool for making sound investments.
- Stock Price Breadth: How far has share volume advanced or declined on the New York Stock Exchange (NYSE)? Here, the FGI relies on data from the McClellan Volume Summation Index.
- Market Momentum: How far is the S&P 500 above or below its 125-day average?
- Junk Bond Demand: Are investors pursuing higher risk strategies?
- Safe Haven Demand: Are investors rotating into stocks from the relative safety of bonds?
- Stock Price Strength: What is the tally of stocks hitting 52-week highs as compared to those at one-year lows?
- Market Volatility: Here CNN employs the Chicago Board Options Exchange’s Volatility Index (VIX), concentrating on a 50-day moving average.
- Put and Call Options: To what extent do put options lag behind call options—greed—or surpass them—fear? Put options allow investors to sell stocks at an agreed price on or before a specified date, while call options work the same way, only investors are buying stocks.
A year ago...... we were sitting above 60...... in the "Greed" zone.
Today...... we're well below 20 "Fear"...... and sinking fast.
Grace & Peace & Love to you all -
Matt