Part 7/10:
Understanding market sentiment is vital. The CNN Fear and Greed Index currently reflects a climate of extreme fear—a signal often associated with ripe opportunities for investment. Monitoring indicators such as market momentum and volatility can guide investors in seizing the moment to buy.
Two key metrics that investors must keep an eye on are market momentum, which pertains to the S&P 500's movement relative to its 125-day moving average, and the VIX volatility index, which forecasts stock price fluctuations. These indicators can inform a judicious approach to investing when the market stabilizes after steep declines.
Stocks to Consider in a Downturn
As the market faces these tariffs and their repercussions, certain stocks present compelling opportunities to consider: