Making Money Minute with Ron Hiebert - The Fear Greed Index
Investors are a fickle bunch. Their emotions tend to ricochet erratically from bullish to bearish and back again. Understanding investor sentiment gives you an awareness as to what others are doing in the market. A good barometer of investor psychology is a website called feargreedindex.net. It uses market and trading indicators to plot an index that has five levels - extreme fear, fear, neutral, greed and extreme greed. Typically doing the opposite at the extremes is where investors profit. Buying during periods of extreme fear, and selling during periods of extreme greed. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.
