Bill Holter’s Commentary
Getting back to even? You can be assured if and when we get back to “even”…nothing will seem “normal”!
Chasing The FOMO Titanic Rally
June 4, 2020
FOMO – (Fear Of Missing Out)
Panic buying is a type of behavior marked by a rapid increase in purchase volume, typically causing the price of a good or security to increase. From a macro perspective, panic buying reduces supply and creates higher demand, leading to higher price inflation. On a micro level (e.g. in investment markets), fear of missing out (FOMO) or buying triggered by a short squeeze can exacerbate panic buying, into a so-called melt-up. – Investopedia
This whole FOMO thingy is kind of perplexing to us.
We maintain Issac Newton learned the real lesson of gravity in a FOMO trade gone bad,
Back in the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, the hottest stock in England. Sensing that the market was getting out of hand, the great physicist muttered that he ‘could calculate the motions of the heavenly bodies, but not the madness of the people.’ Newton dumped his South Sea shares, pocketing a 100% profit totaling £7,000. But just months later, swept up in the wild enthusiasm of the market, Newton jumped back in at a much higher price — and lost £20,000 (or more than $3 million in [2002-2003’s] money. For the rest of his life, he forbade anyone to speak the words ‘South Sea’ in his presence. – Open Culture