F&G Index Detailed Introduction

1. Basic Definition

F&G = Fear & Greed, the Fear and Greed Index, a universal sentiment indicator for global stock/crypto markets launched by CNN, with a score range of 0–100:

1. 0–24: Extreme Fear

2. 25–49: Fear

3. 50: Neutral

4. 51–74: Greed

5. 75–100: Extreme Greed

For example: a value of 18 falls within the 0–24 range, which is the [Extreme Fear] range.

2. What market state does an index of 18 represent?

1. Investors are in full panic, frantically selling assets.

Funds collectively flee stocks and cryptocurrencies, flowing into safe-haven assets like gold, the US dollar, and Treasury bonds; retail investors panic and cut losses.

2. The market is broadly bearish, with negative news concentrated and fermenting.

Volatility surges sharply, put options explode, junk bonds have no takers, and market momentum continues to weaken.

3. Historical pattern: Extreme fear often indicates a medium- to long-term bottom area.

When market sentiment is extremely pessimistic, prices tend to overshoot, and long-term capital will buy the dip in batches; however, short-term panic may continue, so do not immediately take a heavy position.

3. How is the index calculated? (Comprehensive scoring across 7 dimensions)

1. Market momentum (S&P 500 position relative to its 125-day moving average)

2. Stock price volatility (VIX fear index)

3. Junk bond fund inflows

4. Safe-haven Treasury bond fund flows

5. Stock price breadth (number of advancing vs. declining stocks)

6. Stock index put/call options ratio

7. Number of stocks hitting 52-week highs/lows on the market

4. Practical reference (applicable to stocks/Bitcoin)

1. F&G < 25 (e.g., 18, Extreme Fear)

- Short-term: Panic may continue; do not take a heavy position to buy the dip; buy in batches with a light position.

- Long-term: Deploy in batches into quality assets; it is a cost-effective left-side entry window.

2. F&G > 75, Extreme Greed: Beware of bubbles; gradually reduce positions and take profits.

Supplementary Reminder

This index only reflects market sentiment and cannot be used as a sole basis for buying or selling. It needs to be combined with macroeconomic policies, fundamentals, and support/resistance levels for comprehensive judgment. It does not constitute investment advice.