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Recently, navigating London Heathrow Airport with a solid case of jet lag, I noticed a billboard from IG, an investment firm, that read: “From FOMO to JOMO.” As someone familiar with the concept of FOMO (Fear of Missing Out), I was intrigued and initially puzzled by JOMO. It took me a moment to figure out it meant Joy of Missing Out.
After recovering from the jet lag, I did a little research and soon realized that this was more than a catchy slogan. It appears to reflect a broader shift in the thinking of a major investment firm. IG is a prominent global financial services provider known for its online trading platform, which offers a wide range of sophisticated day-trading tools. I was stunned to see it promoting a more mindful approach to trading. This is not a message I would expect from a company that has built its business on the emotions behind Fear of Missing Out.
As a financial advisor, I have long championed the importance of emotional intelligence in making financial decisions. Emotional intelligence is commonly understood as the ability to recognize and manage our own emotions as well as understanding the emotions of others. This includes awareness of the money scripts and deeper emotions that underlie our beliefs and choices around money and investing.
Such self-awareness is especially important during the market fluctuations that are normal and to be expected in long-term investing. One of the cognitive biases that can cloud investors’ judgment at such times is FOMO. It can result in anxiety-driven behavior like ignoring the need for due diligence in order to follow the crowd or be part of a trendy “opportunity.”
Why might a day-trading platform like IG promote JOMO? I am guessing that the more an investor embraces JOMO, the bigger the chance they will shift from a short-term trading focus to a long-term investing focus. It probably is to the benefit of firms like IG if more customers are around for the long term because they avoided going broke from too many decisions motivated by FOMO.
Whatever the motive, the message of moving from FOMO to JOMO is a useful one. I would suggest that a strategy for coping with FOMO might be focusing on JOMO instead. Just consider some of the things you might appreciate missing out on:
- The anxiety of focusing on daily stock market ups and downs.
- The added fees that come with frequent trading and have an often-overlooked negative impact on your investment returns.
- The stress and worry of trying to time the markets with short-term trading.
- The lasting financial harm that can come from large scale financial decisions driven by panic. Selling stocks and going to cash during a significant market drop is perhaps the most extreme example of this.
While you enjoy missing out on these stressors, you can also appreciate the added benefits of JOMO, such as:
- The freedom of disconnecting from the constant barrage of financial news and commentary.
- The serenity of being able to manage your emotional reactions to market fluctuations and stick to your long-term investment goals without succumbing to panic.
- The comfort of trusting in a sound long-term investment plan.
- The confidence and security of knowing there is a greater likelihood that you will benefit from future financial resources and a stable retirement income.
Shifting from the panic of FOMO to the serenity of JOMO can lead to more stable, thoughtful, and ultimately successful investment strategies. Given the inevitable ups and downs of the financial world, the joy of missing out on the frenzy might be a strong component of long-term financial and emotional wellbeing.
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