What is the Fear of Missing Out (FOMO) (financial term)?

"Fear of Missing Out (FOMO)" is the fear of missing things, or the uncomfortable feeling that you are missing out and that others are experiencing more enjoyable, more interesting things or seizing more opportunities than yourself at that moment. This phenomenon is often amplified by social media, where you are constantly kept informed of what others are doing.

In the financial world, FOMO manifests itself as the fear among investors of missing out on interesting investment opportunities. This fear can lead to investors massively investing in promising companies or markets, even if they become overvalued. This can happen, for example, in the technology sector, where the fear of not stepping into a "new Facebook or Alibaba" can drive up the valuations of young companies and lead to overvaluation or bubbles.