Fear and greed

Greed and fear – two intrinsic emotional states relating to the topic of unpredictability of stock market. Vulnerability to those two emotional states might be a result of investors’ low comfort level due to the market instability. Greed and fear relate to an old Wall Street saying: “ financial markets are driven by two powerful emotions – greed and fear”. While sticking to this statement would be an oversimplification, it can also prove to be very truthful. Resisting these emotions can have an utter and deleterious effect on investors portfolios and stock market.