FOMO Drives Stocks

A small percentage of stocks account for most of the market’s gains, putting pressure on investment managers. This according to a recent article in The Wall Street Journal. “Fear of being left behind is a powerful force among fund managers,” the article says, “even if it means taking big risks.” The article notes that in the first six months of this year, technology shares accounted for all of the S&P 500’s gains, adding that “managers… Read More

The Age of FOMO Investing

The current market environment poses a “big psychological quandary,” according to a recent article in Bloomberg. Contrary to what many might think, it argues, long bull markets are not the easiest times for money managers. “The truth is,” is says, “smart investors don’t trade to maximize expected value; they trade to minimize regret. There is nothing worse than ‘buying high’ and then watching the market trade lower. You feel shame because you know you’re the patsy.”… Read More

Fear-of-Missing-Out is Pervasive Among Investors

According to a recent Bloomberg article, the fear-of-missing-out (FOMO) factor looms large as the S&P 500 “got off to its best start to a year since 1999,” adding, “It’s risen above worries about North Korea’s ‘Rocket Man’ and the unpredictable U.S. president who revels in provoking him.” Debating the validity of such fears, the article says, “there’s little debate that there will be something legitimate to miss out on in the stock market in the… Read More