Why Investors Are Feeling FOMO Amid Record Stock Prices
Investors report feeling FOMO, or fear of missing out, regarding soaring stock market prices. This common sentiment can lead to significant market bubbles. The extraordinary increase in stock prices generates both greed and envy among investors. When individuals see others profiting, they often feel compelled to invest, even when it may not be financially prudent. Historically, this behavior is a hallmark of bubbles in financial markets. Investors must tread carefully and consider the broader implications of market trends rather than getting swept up in emotion. Awareness of FOMO and its potential consequences is crucial for maintaining a healthy investment strategy.