CNN’s Fear & Greed Index is a tool I’ve been referencing for years. There’s now a Crypto Fear & Greed Index that I also find interesting–somewhat similar, somewhat different from CNN’s indicator–and I’ve laid out the similarities and differences in this video and how to best use this measurement.
In addition to the speedometer-type indicator, there’s also a graph showing measurements over time, from the past seven days to the past two and a half years. What’s fascinating is how quickly things can change. As just one example, this past spring’s measurement was well over 90, indicating extreme greed, and by summer the measurement was down at extreme fear. And these can change even quicker, sometimes as often as on a daily basis.
I hear 2 questions most often when referencing the stock market indicator, and believe they’ll apply to the crypto indicator as well.
- Can these indicators predict where the market is headed with respect to either crypto or the stock market?
- If not to predict the market, how do we use these indicators?
I find both indicators helpful particularly when things are at extremes. I can open these indicators to show a client the sense of the overall sentiment of the market in general, viewing trends and momentum. I’ll most likely use this crypto fear greed indicator much like I have CNN’s indicator–as part of broader conversations with clients.
CNN’s Fear & Greed Index
Crypto Fear & Greed Index
And please take a look at our most recent blog posts and videos on the stock market:
When times are good, they are really good! But why now? Is this time different than other times in the past? Check out this video to learn more: The Secret Buyer Propping Up The Stock Market
Do you feel like 2021 has been unlike almost any other time in the history of the stock market? I invite you to check out my video, The Stock Market Has Been Amazingly Boring, about what this means, what we should be prepared for going forward, and how Glassman Wealth Services is using this information for our clients and their portfolios.