The fomo market

I was having lunch with some people from the team today and making fun of myself for being a sissy and not buying more $SHOP before the earnings release. It went up almost 10% since and I had been looking to buy in for over the last month.

I barely got “it’s up 10%” out of my mouth when my coworker said, “it’s been up 30% since you started talking about it and I bought in.”

I’m glad I gave someone a good buy tip at least, but I’m of course kicking myself for this. I wrote about the month of fomo last week and nothing has changed.

The market so far in 2020 has been amazing. Seemingly everything is going higher. It’s good to be a long investor in this market.

This of course is the dangers of investing. It’s really easy and you can even say human nature to get greedy in this environment. I look at 10 and even 20% gains in short periods as the norm and it’s easy to start thinking about doubling down thinking it’ll happen again.

We’re in a historic bull run, but we need to remember to take profits and properly diversify. Yolo trades are fun until they’re not.

Over the next month, I’ll also be looking to take profits and diversify away from some of my heavily appreciated tech positions. There are some great value stocks out there and I don’t own enough at this point.