And while every episode possessed its idiosyncrasies, virtually all of them shared one characteristic; which is captured in this famous, and timeless, Warren Buffet quote:
"I get fearful when everyone else is greedy and greedy when everyone else is fearful."Sir John Templeton's famous saying has been equally prescient since the day he uttered it:
"Bull markets are born on pessimism, grow skepticism, mature on optimism and die on euphoria."Now, having said the above, I recognize that multiple times throughout this current, longest-ever bull market, many, if not all, of the components in our Fear and Greed Index were exhibiting high levels of greed and euphoria, and I wasn't sounding the alarms then. Why? Because general conditions during those periods didn't compel me to, like they do now, as I illustrated in the video below.
Have a great weekend!
P.s. While I'm absolutely not recommending that you bet serious money against this stimulus, emotion, and, alas, debt-fueled rally, our Fear and Greed Index scored +91 (high "greed") today; +100 is as high as she goes.