The strength of the global market rally since New Year’s Day has been nothing short of bonkers. Which makes it even more perplexing when it was off of nothing. No significant news. This has led to some observers saying that this is a FOMO rally.
FOMO is a term familiar with Crypto and Western investors, which means
I mean look at the 2018 YTD charts of Tencent, Keppel and Frasers Centrepoint Ltd from my portfolio:
(Courtesy: Yahoo! Finance)
That is some pretty impressive gains with little to no news pertaining to each company. Even more impressive was the way Keppel Corp brushed off the over US$400 million corruption fine announced over Christmas like a boss.
Call it animal spirits, call it FOMO, call it Kiasu (Singlish style yeah!), the market is going wildly optimistic. As Warren Buffett says:
I would be careful at putting new money into the market here, at least until the respective companies report their quarterly earnings. Hey maybe I’m wrong and miss another big leg up, at least I let logic dictate my actions and not emotion or FOMO.
Stay safe and Happy Hunting,