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European Stocks: Fear and Greed
Elliott Wave International discusses how the current stocks sell-off is driven more by fear than rational thinking.

by Vadim Pokhlebkin
3/9/2008 10:00:00 PM

You watch financial news, you know what's going on. Spooked by "concerns over a potential U.S. recession," investors are dumping shares on both sides of the pond. But if you ask us, what's going on here is as old as investing itself: fear and greed. Fear and greed move investors. Fear and greed move market prices, too.

Filed Under: recession, dax, fear, greed, european stocks, India Nifty, SENSEX, S&P CNX NIfty, China Shanghai Composite, iShares FTSE/Xinhua China Trust, iShares MSCI Emerging Index
Category: European Markets


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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.