America’s VIX, or ‘fear index,’ is dipping below 20, CNN’s Greed and Fear index is back into ‘greed’ territory at 65 and Bitcoin and meme stocks are leading a broad-based, ‘risk-on’ rally, as investors decide that inflation is peaking and global interest rates are set to do the same.
AJ Bell investment director Russ Mould. “However, mood follows price, as the old market saying goes, and investors must still coolly assess whether this really is the start of the next bull market or merely another wicked bear-market trap that will catch out the unwary and inflict more pain upon them.
“Some investors may be understandably inclined to think that happy days are here again.
“Bitcoin is up 40% from its lows, even as auditors, investigators, lawyers and the courts pick over the bones of the collapsed FTX crypto empire. Meanwhile, the US-listed Valkyrie Bitcoin Miners Exchange-Traded Fund (ETF), which tracks a basket of 24 stocks, is up by more than 100% in January alone.”