I think SCU makes for a good case study on just how powerful FOMO really is.
The threads where full of posts suggesting it's a bad idea to buy , MC is high , the ann was nothing solid , SCU had no money & all from a few respected posters too.
But FOMO was to strong & now has left a fair few newbies out of pocket posting supposed info on why SCU is good or saying they have lost out.
What i get out of this is that price action is what draws in FOMO buying.
This does not only apply to shares , it applies to everything in life. The 71 Ford XY GTHO phase 3 had a price tag of about $80k in 2000 , by 2007 headlines where quoting sales above $600k & a rear example even going just under $1 mill.
The hype was huge at the time , nearology had non GT examples shooting up in price & then came the bunt in price for all vintage muscle car's no matter what year or make.
Just after the GFC , XY's took a tumble from lofty highs & you could of picked up one for under $300k , prices still haven't recovered since that FOMO buying.
The tulip bubble is probably the best example of FOMO , tulips had value of more the houses at it's high , also ended badly with heaps of people getting burnt.
https://en.wikipedia.org/wiki/Tulip_mania
Do we feel like if we are not part of the action that we are missing out on something special or do we just lose all ambition & logic when we see something gaining in price so much..
Greed is good but say no to FOMO.
