#MarketGreedRising

The fear and greed index is a measure developed by CNN Business to gauge investor sentiment. It indicates how emotions influence the amount investors are willing to pay for stocks, which in turn provides a window into whether stocks are fairly priced at any given point in time.

The index is based on the logic that excessive fear will drive share prices down, whereas excessive greed will drive prices up.

The aim of the fear and greed index is to assess market sentiment, because investing is often emotional and reactionary. Mood can influence an investor's decision to buy or sell stock. The influence of 24 hour news and information networks can create a strong reaction from investors, known as CNN effect

The fear and greed index attempts to gauge the market trends based on the premise that fear results in stocks trading below their intrinsic value and that greed causes upward trends. The index can be seen as both a legitimate investment research tool and a barometer for market timing!!!