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.

A woman smiles as she looks at her smartphone while sitting on her sofa.
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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?

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Frank J. Legan
Partner, Financial Adviser, Cedar Brook Group

Frank Legan is Partner, Financial Adviser and member of the Forward Look Committee at Cedar Brook Group, one of the largest independent wealth management firms in Northeast Ohio. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, closely held business owners, artists, families and retirees. He specializes in lifetime income strategies, investment advice and estate planning services. He also works with businesses to develop strategic and succession planning strategies. He is the author of "The Humanity Factor," a book about focusing on your strengths, guiding you through a personalized, step-by-step guide to financial planning.