Fear Index

The Fear Index is a measure that gauges the level of anxiety or uncertainty in financial markets. It reflects investor sentiment, with higher fear indicating concerns about economic stability or potential risks, which can lead to more cautious or defensive investment behavior. Often derived from market data such as volatility indices, it helps investors and analysts assess market conditions, anticipate potential downturns, and adjust strategies accordingly. Essentially, it quantifies the collective mood of investors regarding economic and geopolitical stability.