Bloomberg Businessweek on the FOMO economy

It's not just crypto: It's stocks such as those of AMC Entertainment Holdings, GameStop, and Tesla that are beloved on Reddit and Twitter, and it's the houses and condos being snapped up almost as soon as they list. The pressure to keep up with neighbors, friends, and social media meme lords who seem to be in the process of becoming wealthy - or, at least, talking about it - can feel unbearable.

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People flush with pent-up savings after a year of lockdowns have more ways than ever to throw darts at the financial dartboard: zero-commission, zero-minimum trading apps; social media message boards; and exchange-traded funds you can hop in and out of as easily as stocks, including a few that explicitly play to the trend-chasing crowd with such tickers as BUZZ and, yes, FOMO.

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Another cause of FOMO right now is the lack of a strong competing narrative.  Warning against risky short-term speculation and saying "it'll all end in tears" are widely derided as boomerisms.  Partly because it seems out of touch with Generation Z's economic reality, but also because asset prices keep bouncing back.  Bitcoin's rebound from a more than 80% decline in 2018 to a record high this year, along with property and stocks, is classic regret fuel for those who missed out.

~ Lionel Laurent, "The FOMO Economy," Bloomberg Businessweek, June 14, 2021