CNN Fear & Greed Index Drops to 42, Buffett's "Buy When Others Fear" Strategy Gains Renewed Attention

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According to The Motley Fool, CNN's Fear & Greed Index has dropped to 42 over the past month, plunging from 71 on May 1 and entering the "fear" zone. The decline has renewed focus on Warren Buffett's classic investing philosophy: "Be greedy when others are fearful." Buffett demonstrated this principle during the 2008 financial crisis, when he wrote in The New York Times that despite widespread panic, there was no reason to doubt the long-term prosperity of quality U.S. companies. His outlook proved prescient; the S&P 500 has gained over 1,000% since his October 2008 commentary. Investors who continued buying during the crisis rather than panic-selling reaped substantial long-term returns.
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