What Is the Difference Between Fear and Greed In Markets?
Fear and greed are the two emotions that drive market crowds. Fear makes investors sell and protect;
greed makes them chase and risk.
Fear
Selling, protecting, panic. Drives prices
below fair value.
Greed
Buying, chasing, FOMO. Drives prices above
fair value.
A Fear and Greed Index measures the balance between them.
Source: CFGI
Markets