I had never heard of this, but it immediately made me think of a favorite Warren Buffet quote:
Be fearful when others are greedy, and be greedy when others are fearful.It lines up perfectly as the inverse. In other words, if the CNN Fear & Greed Index of market sentiment is flashing Extreme Fear, that means the 'Buffet Greed & Fear Index' of smart investor sentiment is flashing Extreme Greed.
And you should be thinking: Buy! Buy! Buy!