Prof G Markets Nasdaq Posts Best Day Since May as Fear & Greed Collide
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Nov 25, 2025 
Robert Armstrong, a U.S. commentator for the Financial Times, dives into the recent volatility in markets, highlighting the tension between fear and greed that causes erratic movement. He emphasizes the importance of long-term valuations and discusses potential fiscal policy impacts ahead of elections. Labor economist Kathryn Anne Edwards explores the September jobs report, revealing a gradually cooling labor market and challenges in manufacturing. She also explains how data gaps complicate Fed decisions, offering critical insights for policy implications.
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Fear And Greed Driving Volatility
- The market currently reflects a fierce tug-of-war between fear and greed, causing violent short-term whipsaws.
- Robert Armstrong says both emotions are unusually strong, producing big price swings despite unclear fundamentals.
Valuations Matter Long-Term Only
- High valuations predict long-run returns but not year-to-year outcomes, so expensive markets can still rally short-term.
- Armstrong emphasizes valuation matters over 5–10 years, not over the next 12 months.
Shade Exposure When Valuations Peak
- If you invest for the long term, consider shading exposure and holding more cash when valuations are extreme.
- Armstrong suggests diversifying and being more cautious rather than outright selling everything.