What is fear and greed index?

What is 'Fear And Greed Index'. The fear and greed index was developed and used by CNNMoney to measure the primary emotions that drive investors: fear and greed. The Fear and Greed Index is based on seven indicators: 1. 2. 3. Stock Price Breadth - as measured by trading volumes in rising stocks against declining stocks.

What is the difference between fear and greed?

An excessive amount of fear can cause stocks worldwide to fall below levels at which they’re fairly priced from a fundamental or economic perspective. Excessive greed leads to the exact opposite, driving stock prices to unsustainable levels. Every day, these two emotions are shown on a scale from 0 (extreme fear) to 100 (extreme greed).

What is CNN Money fear and greed?

The CNN Money Fear and Greed index moved to the "Fear" zone amid increasing recession concerns. US stocks closed lower on Monday, recording losses for the fourth straight session after the Federal Reserve, last week, announced a rate hike of 50 basis points. The European Central Bank and the Bank of England also delivered rate hikes last week.

Is the CNN Business fear & greed Index in bearish territory?

The CNN Business Fear & Greed Index, which looks at seven different measures of market sentiment, is showing signs of Extreme Fear. Four of the seven indicators are in bearish territory. Demand for safe haven bonds is picking up.