FOMO ruins investing

Summary: When markets go flat, doubt creeps in, and that’s when investors make their costliest mistakes. This column breaks down why asset allocation beats timing, why diversification protects you from yourself and what seasoned advisors know about staying the course. On a recent portfolio review call, I had to painstakingly remind a client that equity returns may remain muted for the next two or three quarters. The past year hadn’t been much different, which didn’t make him feel any better. Still, I urged him to stay the course and continue his SIPs and STPs. Equity markets are never linear. We’ve all heard this before, but it truly sinks in only when returns turn flat or negative for an extended period. I reiterated the investment objectives, the time frame and the importance of maintaining a diversified, equity-heavy portfolio. Yet, he mentioned that others in his circles had made “stupendous” returns in th

This article was originally published on November 20, 2025.