Well, here we are again.
Financial markets have moved up sharply. Bitcoin and ethereum, too. Now what? The higher markets go, FOMO kicks in. You know, the dreaded “fear of missing out.” You run into your neighbor(the cocky, boastful one) while watering the lawn (or shoveling snow depending on where you live) and he/she says he/she is making a killing being long the market. Bought the dip he/she boasts. Aargh! You thought about buying……..but didn’t. Arrgh aargh!!
So wadda ya gonna do? The easy way out is to convince yourself that your neighbor is just boasting (or lying) and didn’t really buy the dip. Of course if she/he pulls up in a new Ferrari, you will never have another good night’s sleep. Oh crap.
But if you throw up your hands, run to your computer (or open your app) and push “buy at the market” it may not feel so good come dinner time. Oh sure, you are now long and in the market just like your boastful neighbor. But something feels “funny.” Just before bed, the inevitable “what have I done” feeling takes over your brain. But the markets will continue going up, right? Your neighbor was confident, right?
So by jumping into the markets after a huge rally, you realize that you are now part of the FOMO crowd. After a few more days of markets going up and realizing some small profits, another wave of apprehension comes over you; FOBI. Yup, the always present “fear of being in.” What if you bought “the top?”
But hey, the market wouldn’t be going up if things like inflation, higher interest rates (and for longer), wars, geopolitics, riots and demonstrations, the SEC trying to crush crypto, recession, declining earnings, etc. mattered, right? And, of course, you are in for the long term so it doesn’t matter, right?
Filled with self confidence you happen to run into your neighbor again. Now you can boast that you’re in the market too. So you ask what he thinks about the market. He/she says she/he sold all their positions because the market looked to frothy. The FOMO crowd was getting in. Aargh! He/she said she/he had to run. Had an appointment at the Farrari dealer.
Aargh, Aargh. FOBI.
Editor’s Note: FOBI, short for “fear of being in” is an entirely new acronym, coined by Bill Taylor! Next time you hear it on MSM, you’ll know you saw it here first! CLT
About The Author: Bill Taylor is the CEO of Digital Wealth News and a 40+ year veteran of the financial markets. You can also ready his weekly musings on BTC, ETH, Gold & SP500 at “The Taylor Market Report“.