#MarketGreedRising

Market greed is described as a period when investor optimism surges, leading people to aggressively buy stocks and push prices to unsustainable levels. This phenomenon is usually measured using tools like the Fear and Greed Index, which aggregates metrics such as stock price momentum, strength, breadth, options activity, market volatility, safe haven demand, and junk bond demand. When these indicators show rising values—especially above 80—markets are said to be in a state of "extreme greed".

In recent months (as of August 2025), there have been notable signs of rising market greed, with the S&P 500 hitting all-time highs and sentiment readings reflecting increased risk-taking and speculative buying. Such periods can be dangerous: they indicate potential asset bubbles forming, where prices deviate from underlying fundamentals due to herd mentality and "fear of missing out" (FOMO).

Historically, periods of extreme greed have often been followed by market corrections or crashes as the optimism reverses. Investors are advised to exercise caution in these environments and to heed famous advice such as Warren Buffett's, "Be fearful when others are greedy, and greedy when others are fearful".