The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Allen on July 07, 2015, 10:40:17 AM

Title: Is the "Fear and Greed" index valuable at all?
Post by: Allen on July 07, 2015, 10:40:17 AM: CNN publishes http://money.cnn.com/data/fear-and-greed/

It is the most "fearful" I've seen it since I started looking. I'm not saying that it's time to time the markets or anything, but does this benchmark provide any value? Is it accurate? Is it predicting anything?

For me, just seeing that everyone is freaking out is helpful to trigger me to stay the course.
Title: Re: Is the "Fear and Greed" index valuable at all?
Post by: Kaspian on July 07, 2015, 10:47:22 AM: I've wondered about that myself. I think a little automated thing which increased your DCA amount when the F&G Index was in "fear" territory, and sold a bit to throw in a reserve when it was in the "greed" area would probably do alright in the long-run. I'd want to keep my personal emotion out the decision making though--have a predetermined threshold decide for me.
Title: Re: Is the "Fear and Greed" index valuable at all?
Post by: MDM on July 07, 2015, 10:47:54 AM: Quote from: Allen on July 07, 2015, 10:40:17 AM
It is the most "fearful" I've seen it since I started looking.

Been looking for <1 year?

(http://s23.postimg.org/xgsj4w3fb/screenshot_75.jpg) (http://postimg.org/image/xgsj4w3fb/)
Title: Re: Is the "Fear and Greed" index valuable at all?
Post by: Kaspian on July 07, 2015, 11:04:09 AM: Quote from: MDM on July 07, 2015, 10:47:54 AM
Quote from: Allen on July 07, 2015, 10:40:17 AM
It is the most "fearful" I've seen it since I started looking.

Been looking for <1 year?

(http://s23.postimg.org/xgsj4w3fb/screenshot_75.jpg) (http://postimg.org/image/xgsj4w3fb/)

It's funny--you can almost rhyme off the dips if you look and think about them--US fiscal cliff (end of the world), war in Ukraine (end of the world), war in Syria (end of the world), Greek crisis (again)... Damn, people are scared of everything.