What Is the Fear & Greed Index? How to Check It and Use It for Investing
What Is the Fear & Greed Index?
The Fear & Greed Index is an investor sentiment gauge published by CNN Business, derived from seven market indicators. It ranges from 0 (Extreme Fear) to 100 (Extreme Greed), providing a snapshot of whether market participants are driven by fear or greed.
Why Does It Matter?
It quantifies Warren Buffett's famous advice: "Be fearful when others are greedy, and greedy when others are fearful." Extreme Fear readings (0-25) may signal an oversold market and a potential buying opportunity. Conversely, Extreme Greed readings (75-100) can warn of overheated conditions.
The index combines seven sub-indicators including the VIX, stock price momentum, safe-haven demand, and junk bond spreads, making it a more balanced sentiment reading than any single metric.
How to Check It
You can view the Fear & Greed Index in real time on the finica.io dashboard, complete with a gauge chart and 30-day trend to track shifts in sentiment.
Check Live Data →Key Points
- A 0-100 sentiment index calculated by CNN from seven market indicators.
- Extreme Fear (0-25) may signal buying opportunities; Extreme Greed (75-100) may warn of overheating.
- Combines VIX, momentum, safe-haven demand, and more for a balanced reading.
- Best used alongside other indicators for higher reliability.