February 5, 2014
The recent stock sell off has people once again freaked out about the market. But perhaps it shouldn’t.
CNNMoney’s Fear & Greed Index is now again in extreme fear territory. A month ago, the gauge of investor sentiment was stuck on greed.
The conventional wisdom is that the sell off will be short-lived. The economy is strong. The stock market, which was up more than 30% as measured by the S&P 500 last year, had gotten a little ahead of itself. Investors were looking to take profits. So when troubles in emerging markets came along, that lit a spark over what was already dry wood.