A Young Perspective Towards "Fear and Greed Index"
The Fear and the Greed Index are used to understand the Investor Sentiment. This is developed by CNN Money . This helps in Gauging the Market Sentiment as well as Fair Pricing of Stocks. In general, the logic goes like this (which I assume every Amateur Investor will also understand) that Fear will take the Markets Down and Greed will take the Markets Up. I don’t want to write in detail regarding these Indexes as all information is available online these days. But I would definitely comment on the practicality. The usual quote goes that when “Markets are Greedy, be Fearful and when Markets are Fearful, be Greedy.” This is actually correct but not all investors are able to follow this. They become Fearful when Markets are Fearful and Greedy when Markets are Greedy. The concept of “Buy Low and Sell High” which is very famous is also very difficult to follow. Now I would like to focus upon my Style of Investing during extreme Fearful Markets or Greedy Markets. I hope it helps ot...