FOMO can be bad for Investors. How top advisors avoid it.
By The Exchange Team
FOMO is a powerful psychological force that can cause investors to lose money, say financial gurus.
British psychologists identified FOMO as the fear of missing out on positive encounters.
Josh Brown uses the term "animal spirits" to characterise investors who let their emotions lead them.
It's better to "become rich slowly" than to invest in high-risk, high-reward ventures, says Joseph Bert, chairman and CEO of Certified Financial Group.
For example, bitcoin prices could soar by 20% or more in a day following a single tweet from Elon Musk.
Top financial advisors try to dissuade investors from succumbing to FOMO by playing on their future regret.
Aldo Vultaggio, CIO of Capstone Financial Advisors, prefers to discuss with clients the chances of reaching financial goals with and without "FOMO assets."