Fear and greed are powerful emotions that influence investor behavior and market dynamics, often leading to irrational decision-making. In financial markets, fear can drive investors to sell off assets during downturns, while greed can lead to excessive risk-taking in pursuit of high returns during bull markets. Understanding these emotions is crucial for grasping how they impact historical financial trends, affect security selection, and inform risk management strategies.
congrats on reading the definition of Fear and Greed. now let's actually learn it.