Meanwhile, CNNMoney's
fear and greed index, which, in addition to factoring in the VIX, also tallies a number of other market indicators such as market breadth, stock price strength and the demand for safe havens, just hit its gloomiest «extreme fear» level.
The CNN
Fear & Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating fear and 100 gr
Fear &
Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put
and call options, junk bond demand, market volatility
and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating
fear and 100 gr
fear and 100
greed.
I am not going to cover all of the inherent headwinds faced by mutual funds
and the managers such as cash limitations, style limitations, retail
fear led redemptions or retail
greed led share purchases, egos, bonuses tied to
indexes (Active Share), consultants trying to earn their keep focusing on quarterly results, unnecessarily high fees, etc..