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The Fog Index: Recognizing Extremes of Fear or Greed in the Financial Markets
Jeff Cheah & Russel D. Ogden
Jeff Cheah & Russel D. Ogden
ISBN: 9781926747958 Paperback (March 2010)
 
Financial bubbles and crashes are caused by the contagion of herd behaviour. Most risk pricing models fail to capture the herd sentiment. THE FOG INDEX is a tool to help market participants recognize extremes of fear or greed in the financial markets. It helps to spot the early warning signs of euphoria heading toward panic, as well as the early signals that pessimism and complacency are turning toward rational optimism. THE FOG INDEX helps to understand risk from a market sentiment perspective. It is new index, available exclusively to subscribers of Thompson Reuters' DataStream and 3000 Xtra products.
 
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