Stampede Is On for Stocks as Investors Fear Missing Out on Rally
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FOMO is driving equity fund managers in a “super-frothy start” to the new year, says Bank of America Corp.
The rally in January implies an annualized return of 133 percent in the S&P 500 Index, and a fear of missing out has prompted investors to send a record amount of money to equity funds in the past four weeks, strategists at the lender’s Merrill Lynch unit wrote in a Jan. 18 note citing EPFR Global data. Equity markets around the world have been on fire in 2018, with U.S. benchmarks in particular hitting milestone after milestone in quick succession.