Market Watch with Tom Waitt

August_25th_2010.mp3 Fear and Greed    In the movie 'Wall Street', Gordon Gekko says, 'Greed is Good' as the market soars higher. In market parlance, the opposite of greed is fear which is bad for investments, as the market has a tendency to scare people out at the bottom and suck them in at the top.   Market Emotion Cycle (click for larger picture) 'Fear and Greed' tend to rule at market tops and bottoms. The market emotion cycle sees optimism turn to excitement, the thrill leads to euphoria and greed, slipping to anxiety, denial and fear followed by desperation panic, capitulation, despondency, depression, disgust and doubt. Globalization is upon us, with what happens half way around the globe reported immediately and reflected in equity and bond market prices with virtually no delay. The problem is the global attitude, influenced by events turns cold and hot with every movement. The international investor attitudes changes in sync with yesterday's news reports. Market down, glo