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.
BH Sentiment Index: Fear Spikes, Value Salivates, Fast-Paced Growth Takes Cover!
"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)).
BH Fear & Greed Index: Speculative Stocks Are at Risk
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…
BH Market Sentiment Index: Greed Just Faded Fast!
BH Fear & Greed Index: Despite Naysayers, Momentum Still Dominates
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…
