Fear of missing out is quite a thing these days. You hear from a friend that one of their friend’s friends bought GameStop and cashed out at the high. He made enough to pay off his mortgage.
Here are some things to remember when chasing an investment in a panic because you have FOMO:
- First, investments made in a hurry without thought and deliberation typically turn out to be bad moves.
- Second, typically the tale you hear is different from reality. When stories get passed down, they grow in a fantastical nature.
- Third, if you decide to give in and buy a “FOMO” investment, do so only with the money you can afford to lose. Maybe this is your “casino money“ and since you don’t go to casinos during the pandemic, why not.
Don’t confuse play money with a real investment!