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Friday, October 10, 2008

Spotting the Bottom - Look at the Fear Index!


The Fear Index has shot up again wildly! At a high of 76.94!.(See our previous article on The "Fear" Index)
Some of our readers have asked me, what the heck is this?SGdividends will explain it as simplified as possible and just state the things you need to know.
The "Fear Index" is a guage of investor's confidence. The lower it is in value, the more complacent people are. Notice how the boom years of 2005-2007 are marked by low values.The higher it goes, the more panic there is. Notice it again?
Investing Idea: SGdividends believe that the market cycle bottom will be reached when there starts to be a reversal of this index. Clearly, as of now, its not reached! (See our article on Sectoral Investing).
But, don't wait for the bottom. (See Chua Soon Hock's take on catching the bottom)
It's your money - invest it wisely. Learn, understand and execute.



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