How Investors Can Avoid the Hype and Ditch FOMO for Good
Don’t be swayed by hot investing trends. Smart investors embrace financial authenticity by following their own plans, not the herd.


The surge in popularity of new age financial trends tempts many investors to dive in without considering the effects on their long-term financial goals. The allure of quick returns from cutting-edge sectors can be compelling. However, as we've seen with past financial frenzies — from the dot-com bubble to the housing market crash — following the crowd without a clear strategy can lead to precarious outcomes.
These episodes underscore the need for a more introspective approach to investing, one that resists the gravitational pull of market manias. Ask yourself: Am I experiencing FOMO (the fear of missing out) or do I have a true desire to include these sectors in my portfolio?
Emerging sectors like AI and cryptocurrencies have been in the limelight, with AI gaining attention due to breakthrough technologies and bitcoin nearing all-time highs, fostering FOMO for many investors.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For those genuinely interested in these areas, it's crucial to approach participation with a clear alignment to personal financial goals and risk tolerance. Engage in investments that resonate with your unique financial narrative, ensuring any venture into trendy sectors is not just a chase after market trends but a considered step toward fulfilling your financial aspirations. This balanced approach lets you explore new technologies while staying grounded in financial realities true to your individual story.
Understanding your personal motivations and goals goes a long way when it comes to financial planning. It's about recognizing that your financial journey is as individual as your fingerprint. This perspective encourages measuring success not by the yardstick of others' achievements but by your progress and fulfillment. This approach is particularly relevant when navigating through the noise, where the distinction between genuine innovation and speculative bubbles can often blur.
To move forward, look backward
One practical step to counter the herd mentality is to "measure backward" — an exercise in acknowledging and appreciating your financial milestones, however modest they may seem. This practice fosters a positive mindset, crucial for making informed decisions amid the hype surrounding new investment trends. It also involves taking stock of your strengths and resources, which can provide a steadier foundation for your financial plans than the shifting sands of market fads.
Developing a financial plan that truly reflects your life's unique narrative requires honesty and openness with yourself and your adviser. It's about crafting a strategy that not only prepares you for the future but also resonates with your personal values and aspirations. In this context, the frenetic pace of the latest investment trends is less likely to sway you, as your decisions are anchored in a deeper understanding of your financial and life goals.
Keep your eyes on the prize
Let's not lose sight of our personal stories and the values that guide us. The true north of our financial compass should not be the fleeting promises of unprecedented returns but a path that leads us to fulfillment and peace of mind. In doing so, we can navigate the currents of financial trends with wisdom and discernment, ensuring that our investments serve not just our financial aspirations but our broader life goals.
While the glitter of these new ideas can be hard to ignore, grounding our financial decisions in our unique stories and values offers a more sustainable path to financial well-being. This heart-driven approach not only shields us from the pitfalls of herd mentality but also aligns our financial strategies with what truly matters to us, paving the way for genuine fulfillment and success.
Securities offered through Cadaret, Grant & Co., Inc., an SEC Registered Investment Advisor and Member FINRA/SIPC. Advisory services offered through Cadaret, Grant & Co., Inc. and Cedar Brook Group, an SEC Registered Investment Advisor. Cadaret, Grant & Co. and Cedar Brook are separate entities.
Related Content
- What’s Behind the Bitcoin Rally?
- Expecting a 12% Return on Your Portfolio? That’s Dangerous
- Want to Get Rich and Stay Rich? Avoid 10 Investing Mistakes
- Can Money Buy You Happiness? Yes, It Can. However…
- Three Money Tips to Keep your FOMO in Check
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Frank Legan is a Cleveland-based author and a Financial Adviser with SEIA. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, business owners, artists, families and retirees. He focuses on lifetime income planning strategies, investment advice and estate planning services. He also works with businesses to develop strategic and succession planning strategies.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to Know
A 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
You Don't Have to Be Wealthy to Need a Wealth Manager
Navigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European Equities
European equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
How Do You Know You Are Ready for a Gray Divorce? 15 Yes-or-No Questions
As people 50 and older get more gray divorces, many splits are initiated by women who want a new path. Answer these 15 questions to see if you might need to think about how you should move forward.
-
'Buy Now, Pay Later' for Everyday Spending? This Financial Pro Thinks It's Risky
'Buy Now, Pay Later' apps can get you out of a jam when you need money quickly. But using them regularly for small purchases could create problems.
-
Five Things to Consider Before Rolling Your 401(k) into a Roth IRA
Converting at least some of an old 401(k) to a Roth IRA can offer long-term tax benefits and retirement flexibility, especially if you anticipate being in a higher tax bracket later or wish to leave a tax-free legacy.
-
From Dream Apartment to Nightmare: When Your Landlord Evicts You Through No Fault of Your Own
This is what I suggested a tenant do to get out of her lease after her landlord's inexperience and lack of action made her rental situation unsafe. It's a legal situation called 'constructive eviction.'
-
Six Steps to Being Empowered and On Track: An Expert Financial Guide for Women
While most female investors feel on track with their financial goals and empowered by managing their investments, many regret not starting sooner. Here's how you can get started and take control of your financial future.
-
Selling Your Business? This Powerful Insurance Option Unlocks Multigenerational Wealth
Private placement life insurance (PPLI) offers almost unbelievable investment flexibility, estate planning and tax advantages. And it's completely legit.