Investor sentiment

Thursday 27 November. According to CNN’s Fear & Greed index, the market is in “extreme fear”.

Comprised out of seven indicators, it shows that the market is nervous. As a matter of fact, looking back, most of November has shown “extreme fear”.

The downward trend in investor sentiment started late September and has not yet been broken. A lot of sounds around a big crash in the stock markets in the not-too-distant future are surfacing, and we see funds and investors taking positions accordingly. On the other hand, we also see more professional investors buying the dips (see the article of 13 November), and Historically, when the volatility index, $VIX, jumps above 28.7 points, the S&P 500 has delivered strong returns over the following 12 months.

Nobody can predict the stock market, but it is wise to remain vigilant in current times. And open for opportunities.

Sources: CNN, Apple Tree Capital Partners, Schroders, Refinitiv, The Kobeissie Letter