Fear of missing
Today morning at exactly 9:15am, I got a call from a friend saying that he wants to invest Rs 1,00,000/- into equity. I said fantastic and when the discussion continued, he neither had a goal nor a clear-cut investment strategy with him. Fortunately, he approached me for that and I was there to educate and support him. After the discussion I noticed that he wanted to invest in equity because of Fear of Missing Out (FOMO).
FOMO happens when you have not invested in an investment avenue and its price starts jumping regularly. Currently we are facing a bullish equity market and many people are jumping blindly to it because of FOMO.
In addition to FOMO, I also want to talk about Fear of Being Invested (FOBI). FOBI occurs when you have already invested and you have the fear that market will crash and will take all your earnings and capital.
Both FOMO and FOBI are equally dangerous for your financial health since they make you do irrational things, which you regret in hindsight. We can effectively eradicate this kind of irrational behaviour with clear cut investment strategy. If we have a clear goal and strategy then we act sensibly during market fluctuation and also, we will not be affected by FOMO or FOBI.
“Save, Invest, Spend and Be Happy”
