Does market fear create opportunity? I analyzed 10 years of Fear & Greed Index data, focusing on when it hit Fear (<40) or Extreme Fear (<20). The idea: when markets panic, could that be the best time to buy? I tracked S&P 500 & Nasdaq-100 rebounds to find out. A thread 🧵👇🏼

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The results? Extreme Fear often signals strong buying opportunities. The S&P 500 averaged +9% in 3 months & +20% in 1 year after extreme fear, with the Nasdaq doing even better. Over 3 years, nearly all fear-driven buys resulted in gains. Historically, panic moments rewarded contrarians. 2/4

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Of course, markets don’t move in straight lines—fear can persist, and timing isn’t perfect. But historically, buying during deep fear has paid off more often than not. Sentiment & returns are often inversely correlated—when fear peaks, long-term investors tend to win. 3/4

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This isn’t financial advice, just an interesting look at fear as a contrarian signal. Have you ever used the Fear & Greed Index to time buys? Or do you wait for other indicators? Curious to hear your thoughts! 🚀📉 4/4

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Riktigt bra röj på allt nu. Skitkul 😀

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