The Investor Insight - October 2017

“FEAR OF MISSING OUT,” or FOMO, happens on an everyday basis whether you know it or not. We feel anxiety if others are enjoying a product or experience, or making money, while we are unable to participate. This is social anxiety at its core and an all-too-common trait in humans. This is how we are wired. Many of us must fill the void, the itch, in order to feel satisfaction and ensure ourselves this was worth the money and wait. We live in an interconnected world where information is disseminated at a rapid pace.

This social behavior plays an integral part not only in our everyday lives but also in the stock market. What’s the latest hot stock? Mr. Advisor, everyone I’ve talked to is buying this stock or idea—why aren’t we? Advisors field these sorts of questions daily. Half the battle is talking the client off the ledge from deviating from the plan and to remain disciplined. I would like to share an instance where the behavior described above was on a collision course with an investment idea that took the stock market by storm only to come to an abrupt halt. Read More