What is a Fear and Greed Index? A fear and greed index tries to estimate investor sentiment in the stock market. When people feel greed, it means they are either buying or will buy stocks; this pushes prices up by increasing demand. When people feel fear, it means they are either selling or about to sell stocks, which decreases stock prices.
Is the CNN Money fear and greed Index in the 'fear' zone?
The CNN Money Fear and Greed index remained in the "Fear" zone despite US stocks rising for a second session. The Dow Jones jumped more than 500 points on Wednesday following strong earnings reports from NIKE, Inc. (NYSE:NKE) and FedEx Corporation (NYSE:FDX).
How does fear affect stock prices?
Fear = Selling = More Supply of Stocks for Sale = Stock Price Decreases. Greed = Buying = More Demand for Stocks = Stock Price Increases. VIX Fear Gauge. The Chicago Board of Options Exchange (CBOE) Volatility Index (VIX) measures fear by comparing the price volatility of Put Options versus Call Options.
