It’s not too late to find that perfect, fright-inducing Halloween costume. Might I suggest you go as a Wall Street trader?
Investors are once again pretty scared about where stocks are going next. CNNMoney’s Fear & Greed Index, which measures seven indicators of market sentiment, fell to “Extreme Fear” levels on Monday.
The move took place as tech stocks plunged and the VIX (VIX), a gauge of volatility that is one of the components of the Fear & Greed Index, spiked more than 13%.
Now it may seem odd that the market is this jittery.
The Dow and S&P 500 are barely below the all-time highs they hit last week. The Federal Reserve has signaled that low interest rates are here to stay for awhile. And the Alibaba (BABA) IPO was a smashing success. What’s not to love?
But all those factors might be helping to create more fear.