FOGO - it is not Fear of Getting Old, but
FEAR OF GETTING OBLITERATED!
Forget about FOMO - fear of missing out. That was yesterday. Now, as Paul Singer and Elliot Investment Management highlighted in a recent investor letter, the real fear should be excessive speculation and high valuations. We have heard this before, and it may be early, but downside risk is high when valuations are high.
The fear is a quick shift in valuation thinking, and it will be hard to exit positions when the market turns.
The key issue is learning to be a resilient investor who can diversify and adjust allocations when expectations change sharply. Scenario analysis can help here. Consider upside and downside risk, and plan for the extremes.
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