Where is the Panic phase that comes after Complacency?
Fun chart. Thanks
Rykin_Capital
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Still in euphoria phase perhaps.
Diaana
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@RykinMD, Or again:-)))
SunnyHillCapital
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Beautiful analysis of mass psychology, we really could see another impulse to the downside! Let's see. Thanks for sharing!
SLOPolarBear
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You could superimpose this same framework over the stock market from the Global Financial Crisis of 2008-9 up to 2019. I've been investing for nearly 20 years and at any given moment, someone in the market is experiencing euphoria, disbelief, bullishness, or bearishness. What drives markets up is cash; the more of it available, the higher the markets go. Money attracts more money; look at the billion dollar lottery ticket sales. Even the most puritan soul can't resist the temptation of buying a ticket and playing 'what if?' And because of this, market participants eventually find ways of spending money they don't have. Markets 'top' and breakdown because of false liquidity: margin.
Fun chart. Thanks