the.com/market sentiment
the collective mood swing that turns spreadsheets into psychology.
means the overall attitude of investors toward an asset or market, driven more by emotion and expectation than by hard fundamentals.
from finance borrowed sentiment from psychology in the 20th century, formalizing what traders always knew: prices move on fear and greed as much as on facts.
fear indexthe vix literally measures market anxiety in real time
self-fulfillingbelieving a crash is coming can cause one
contrarian tradebuffett says be greedy when others are fearful
for instance
vix spike 2020 — fear gauge hit 82 as covid panic hit markets in march
gamestop mania — reddit sentiment squeezed hedge funds in january 2021
dot-com euphoria — nasdaq nearly quintupled on pure optimism by march 2000
lehman collapse — sentiment froze credit markets worldwide in september 2008