FEAR AND GREED

The 'tourist explains why the CNN Fear and Greed Index is a poor reflection of market sentiment

Over the past few months, I have argued that stock market sentiment is stretched and that investors are overly optimistic about future returns. Inevitably, when I make this statement, someone sends me the CNN Fear & Greed Index showing a “FEAR” or “EXTREME FEAR” reading and claims my market assessment is way off.

Let’s dig into this index and see why the…