9, The Measure Of Extreme Fear

Fear & Greed is CNNMoney’s investor sentiment tool that comprises of 7 markets indicators.
See Fear & Greed Index – Investor Sentiment
The 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…

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
This entry was posted in food, horticulture, politics and tagged , , , , . Bookmark the permalink.

6 Responses to 9, The Measure Of Extreme Fear

  1. DrLoser says:

    Threatening a trade war with China is bound to break dishes.

    You are a silly old man. What could this possibly mean?

    Whilst I wait for your inevitably cretinous response, I think I’ll stock up on dishes. Like every other prediction you have ever made, this seems to be a good predictor of making money by investing in the opposite.

  2. Deaf Spy says:

    That will change after a trade war.

    How and why, would you please explain yourself? Can you? 🙂

  3. Grece says:

    Trade war Robert? You do realize, well, hopefully you do, that all your predictions never pan out. With that said, let me ask you, when was this alleged trade war started and by whom?

  4. Deaf Spy wrote, “unemployment is at record low”.

    That will change after a trade war.

  5. Deaf Spy says:

    Tax cuts and pay-raises don’t help people who are unemployed.

    But unemployment is record low. The employment among minorities is record high.

  6. Grece says:

    Extreme fear? LOL…fearful of what, more jobs and money in their paychecks? The ONLY people that are fearful of anything are the progressive liberals and the Democratic party.

Leave a Reply