I believe you, but having never encountered this index or representation before. I have no fucking clue what it’s trying to tell me. Is it showing whether the public is fearful of the economic momentum or feeling greedy? Greed doesn’t seem like a good thing.
That’d be like a consumer confidence measure, something that just polls the general public.
The fear and greed index is based off of technical measurements of various active markets.
Very broadly, it is telling you whether or not the financial class, investors, stock traders, corporations significantly involved in that, your 401k managers… are acting fearful or greedy.
A middling score close to 50 basically represents ‘reasonable, stable growth’.
Extreme fear means market participants are acting like a significant stock/bond downturn either is occuring or about to occur.
Extreme greed means market participants are acting like a huge upswing in stocks and bonds are occuring and will be maintained in the future.
You’re right that extreme greed isn’t a good thing, as it usually means a whole bunch of irresponsible financial bets are being made, that will later pop, and crash.
At the same time, extreme fear is also bad… because it basically is that crash occuring.
Maybe think of it kind of like some value you get back from your blood work.
There’s a generally accepted ‘average’ value that means you are stable, healthy.
Then, there is a range of higher and lower values that are… relatively normal, within reasonable, expected variations.
Then, there are extreme values, way outside the acceptable range, either way too high or way to low, and now its time for your doctor to start looking at treatment options.
I hope this doesn’t come off as being snarky because I’m trying to give genuine advice from the audience you’re probably trying to target but it’d be a good idea to include this bit anytime you’re presenting that graphic:
The fear and greed index is based off of technical measurements of various active markets.
Very broadly, it is telling you whether or not the financial class, investors, stock traders, corporations significantly involved in that, your 401k managers… are acting fearful or greedy.
It does a good job of summarizing what I’m supposed to gather from the index.
Genuienly… Like, I myself am autistic, and I’m willing to bet a whole lot of other data scientist type technical data sets type careerists either are as well, or are close.
What I’m trying to say is: It is genuienly difficult to be both well versed enough in the math and data… and at the same time have the requisite communication skills to present a whole lot of complex data in a way that people with less expertise can understand easily… while also at the same time not over generalizing so much that you are actually giving a just flat out false description or misleading metaphor.
I appreciate your summary of what I wrote in the last post.
I believe you, but having never encountered this index or representation before. I have no fucking clue what it’s trying to tell me. Is it showing whether the public is fearful of the economic momentum or feeling greedy? Greed doesn’t seem like a good thing.
It is not a measure of public sentiment.
That’d be like a consumer confidence measure, something that just polls the general public.
The fear and greed index is based off of technical measurements of various active markets.
Very broadly, it is telling you whether or not the financial class, investors, stock traders, corporations significantly involved in that, your 401k managers… are acting fearful or greedy.
A middling score close to 50 basically represents ‘reasonable, stable growth’.
Extreme fear means market participants are acting like a significant stock/bond downturn either is occuring or about to occur.
Extreme greed means market participants are acting like a huge upswing in stocks and bonds are occuring and will be maintained in the future.
You’re right that extreme greed isn’t a good thing, as it usually means a whole bunch of irresponsible financial bets are being made, that will later pop, and crash.
At the same time, extreme fear is also bad… because it basically is that crash occuring.
Maybe think of it kind of like some value you get back from your blood work.
There’s a generally accepted ‘average’ value that means you are stable, healthy.
Then, there is a range of higher and lower values that are… relatively normal, within reasonable, expected variations.
Then, there are extreme values, way outside the acceptable range, either way too high or way to low, and now its time for your doctor to start looking at treatment options.
I hope this doesn’t come off as being snarky because I’m trying to give genuine advice from the audience you’re probably trying to target but it’d be a good idea to include this bit anytime you’re presenting that graphic:
It does a good job of summarizing what I’m supposed to gather from the index.
It doesn’t come off as snarky at all, no worries!
Genuienly… Like, I myself am autistic, and I’m willing to bet a whole lot of other data scientist type technical data sets type careerists either are as well, or are close.
What I’m trying to say is: It is genuienly difficult to be both well versed enough in the math and data… and at the same time have the requisite communication skills to present a whole lot of complex data in a way that people with less expertise can understand easily… while also at the same time not over generalizing so much that you are actually giving a just flat out false description or misleading metaphor.
I appreciate your summary of what I wrote in the last post.