The latest batch of market volatility has again driven the market closer to fear, a scenario long-term investors increasingly view as opportunity, while investors with immediate liquidity needs feel increasingly pressured.

After 3 consecutive strongly-positive years for US stocks (see graph), 2026 is off to a healthy start, despite geopolitical risks (Maduro removed from Venezuela) macroeconomic political risks (the Trump administration continues to pressure Fed Chair Jerome Powell), as the BH Market Sentiment Index sits at 70 (Greed).

The BH Fear Index sits firmly in “neutral” (at 53) heading into the holiday week as stocks staged a late week rebound driven by a tech rally and cooling inflation data.

Despite the selloff on Friday (the S&P 500 declined 1.1% and AI-megacap Broadcom was particularly weak (-11%) after releasing lower margin expectations) the market remains in an uptrend and the AI trend is likely firmly intact (with more upside from industry leaders…

Almost like clockwork, when the BH Sentiment Index touched on "Extreme Fear" just 2 weeks ago, the market has come screaming higher as "they" bought the dip.

In yet another whipsaw move for the market, investors "bought the dip" driving the BH Sentiment Index from only 20 ("Fear") to now 55 in just one week. It's been a wild and unusual ride over the last 4 weeks as the market "Fear Index" (The VIX) spiked and is now falling, credit spreads widened a bit (and are now shrinking) and growth stocks have come roaring back after the market sold off following Nvidia earnings (which were very good) and now news that Google TCU chips are finding massive inroads with AI.

"Market Fear" is currently strong, as the BH Market Sentiment Index has fallen from 83 ("extreme greed") just 3 weeks ago to now 20 (teetering on "extreme fear"). The reason is multifaceted, but the market has posted significant gains in recent months (since "Liberation Day") and investors are increasingly concerned about an "AI Bubble," as well as an increasingly hawkish fed (creeping inflation fears) and unsettled trade agreements with South Korea (we import a lot of steel, semiconductors and cars (Kia, Genesis, Hyundai)).

Market "Greed" is tumbling, with the BH Sentiment Index falling from 83 two weeks ago, to 50 last week, and now only 38 (Fear). This is an increasingly attractive time to buy quality stocks that have sold off (be contrarian), however speculative growth stocks (e.g. the "AI/Growth Bubble") is at risk of falling further…

Market "Greed" is tumbling, with the BH Index falling from 83 a week ago ("Extreme Greed") to now only 50, placing sentiment firmly in the "Neutral" range as market participants try to make sense of tariff court cases, the ongoing government shutdown, and constant cries of a growth/AI stock bubble.

BH Fear & Greed Index: Markets regained momentum, confidence and "greed" over the last week as stocks remained near flat but regained their footing as money flowed in (MFI over 50 again for SPY), the VIX (market fear index) calmed down, credit spreads came down/ remain low, and treasury yields remained mostly neutral. Nvidia…

BH Fear & Greed Index: The market remains a bit jittery with the VIX slightly elevated and gold prices hitting record highs (gold feels a bit like a "meme stock" at this point). Sharing the updated BH Market Sentiment Index. From a high level, this market remains neutral to slightly greedy.