Very Gucci

Yesterday, I received the following text from a friend; “TGIF! Going to watch the game? LMK.. I have FOMO..”

Now, let me preface this by saying I am parent and been on the text band wagon for a while. While my text slang is not as advanced as my teenager’s, I have been around long enough to be able to decipher TGIF (THANK GOD IT’S FRIDAY) and LMK (LET ME KNOW). That said, the anacronym FOMO was new to me.

After a quick google search, I discovered that FOMO means ‘FEAR OF MISSING OUT’.

After thinking about the phrase FOMO, it had me pondering about the Investment Markets. Earlier this year, March of 2020, the Stock market fell 34% within a 28-day period; FOLO -FEAR OF LOSING MONEY, (Yes, I Made this up) was the tune. During this stretch when the market was going through a sharp free-fall, Investors became ultra-risk averse and FOLO was on their mind, they didn’t buy, thus great bargains were to be had.

Nonetheless, as the market and economy healed, FOLO turned into FOMO. FEAR OF MISSING OUT took over FEAR OF LOSING MONEY. People have become risk-tolerant and afraid of being out of the market, and thus they have been buying aggressively, in which case you can’t find as many bargains. That’s where we are now.

In these kind of FOMO markets, it’s important to understand that is not the kind of environment in which you would be buying with both hands, but instead to exercise prudence.

What a year in the markets! From FOLO to FOMO in such a short time frame. Wishing you all a very Merry Christmas and Happy New Year. Enjoy your FAM (CLOSEST FRIENDS) and hoping that 2021 will be LIT (AWESOME) or at least Very Gucci (Fresh!)

*Any opinions are those of Taylor Easley are not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Investing involves risk and you may incur a profit or loss regardless of strategy selected.