With stocks back in record territory, investors are getting greedy again.
CNNMoney's Fear & Greed Index shot back into Greed mode Thursday for the first time since late May, as the Dow and S&P 500 rallied above their record closing highs from May, and the Nasdaq climbed to its highest level since October 2000.
The return of the bull comes as investors have started feeling more confident about future policy decisions from the Federal Reserve.
During a speech in Massachusetts Wednesday evening, Fed chairman Ben Bernanke reassured investors that a "highly accommodative monetary policy for the foreseeable future is what's needed in the U.S. economy."
Investors grew jittery in late May, after Bernanke hinted that the central back could begin pulling back on its $85 billion-per-month bond buying program later this year.
Stocks began a choppy and volatile descent as the thought of no stimulus spooked investors. At the same time, the Fear and Greed Index swayed between fear and extreme fear.
But top central bankers, including the chairman, have been going to great lengths to calm investors, reiterating time and time again that any scaling back of stimulus will be tied to significant improvements in the economy. Those comments have helped both stocks and sentiment to rebound.
While it looks like stocks are headed back up, don't expect a smooth ride.
"We expect stock market gains to be accompanied by more volatility than experienced in the first half of the year," said Jeffrey Kleintop, chief market strategist at LPL Financial.
And more volatility also probably means more investor fear.
Facebook will make its way into the Nasdaq-100 (NDX) next week, but the social network could find itself in the even more widely tracked S&P 500 (SPX) soon enough, too.
According to Standard and Poor's methodology, "initial public offerings should be seasoned for 6 to 12 months before being considered for addition to an index." Facebook (FB) just celebrated its six-month birthday as a public company a little over two weeks ago.
While MOREHibah Yousuf - Dec 6, 2012 1:41 PM ET
Not a member yet?Sign up now for a free account
|Home Depot investigating 'massive' hack|
|Colorado's missing marijuana taxes|
|Morgan Stanley predicts the S&P 500 could skyrocket to 3,000|
|The U.S. dollar is super strong now|
|Yahoo's Marissa Mayer about to get $10 billion|