Fear & Greed is CNNMoney’s investor sentiment tool that comprises of 7 markets indicators.
See Fear & Greed Index – Investor SentimentThe fear is palpable according to several measures but it’s not yet a panic. Folks are just making sure they know where are the doors.
Investors take risks but when government adds risks to the mix, investors react, sometimes badly, sometimes with due diligence and sometimes with caution. Threatening a trade war with China is bound to break dishes.
Timing is great if you ask me. A trade war takes awhile to have effect. By mid-term elections, this could be ugly if not bloody. I see huge swings in the flow of raw materials, agricultural produce, all kinds of consumer products… This could be good for Canada temporarily. We can sell more stuff to China until the next great recession is triggered. USA is a big part of our trade but if Trump sanctions USA with tariffs against the world, USA’s economy will slump quite a bit. I figure by voting day many farmers and workers and investors who voted for Trump will have more regrets. Tax cuts and pay-raises don’t help people who are unemployed.
UPDATE 2018-03-26 Just to show things can get worse, today’s measure of fear in the stock market reached 5 with all indicators except volatility in stages of “extreme fear”. The market appears poised to blow up. I wonder who/what will strike the match in the powder-keg. Trump has set up conditions for a trade war. I guess that could get really bad really fast. Proximity to the mid-term elections in USA could increase uncertainty. Maybe Mueller will put forth more indictments…