The Stock Market is Nearing Peak-FOMO

The most dangerous time to invest is when the fear of missing out (FOMO) is greater than the fear of loss. [Jeff Clark's Market Minute]( The Stock Market is Nearing Peak-FOMO By Jeff Clark, editor, Market Minute The most dangerous time to invest is when the fear of missing out (FOMO) is greater than the fear of loss. It’s an odd characteristic, really. Folks will tolerate losses as long as everyone around them is losing money, too. But, if we’re on the sidelines while everyone else is making money, well, that’s unacceptable. So, we set aside our discipline. We ignore our risk parameters. And we chase investments higher into unfavorable conditions – even though we know better. Then we lose money along with everyone else. Recommended Link [“You need at least $100 of this asset – and it’s NOT gold” – Dr. Nomi Prins]( [image]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( -- This cycle plays out all the time. Think back to the cryptocurrency market in 2021. Bitcoin was trading above $60,000. All sorts of obscure, functionless, crypto coins were being created out of thin air. Then they’d double or triple in value in a matter of days. Folks who had no understanding of the crypto market – no idea of what it’s for or how it’s used – threw their hard-earned money into the scheme. They didn’t care about the risk of loss. All they knew was their next-door-neighbor’s teenage son, their babysitter, and the check-out lady at the local Piggly Wiggly were making money in crypto. And, the fear-of-missing-out was too painful to ignore. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. In hindsight, it’s easy to see that 2021 was a peak-FOMO moment for crypto. It was also a peak-FOMO moment for non-fungible-tokens (NFTs), ICOs, Bored-Apes, and digital images of rocks. We won’t know for sure for several months, but it sure feels as though we’re reaching a peak-FOMO moment for the stock market. The S&P 500 currently trades for about 20x 2024 earnings estimates. That means the earnings yield for the S&P 500 is about 5%. The current yield on a three-month Treasury bill is 5.5% (and likely to go higher following the FOMC meeting next Wednesday). In other words, investors can buy the S&P 500 – and assume the risk that goes along with it – and expect to earn about 5% over time. Or, they can buy a “risk-free” U.S. T-bill and earn 5.5%. Yet, investors are rushing to buy stocks. Why? Because the fear of missing out is greater than the fear of loss. This is a dangerous time to be putting fresh money into the stock market. Best regards and good trading, [Signature] Jeff Clark READER MAILBAG Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [Former Trump Advisor Reveals Secret in Trump’s Tax Returns]( My name is Brad Thomas. 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