Investopedia’s editor discusses the current indecisiveness in the Yahoo Financial interview below. He explains that investors are wavering between two opposing stock market fears: FOMO (the fear of missing out on a bull rise) and FOLA (the fear of losing it all in a bear collapse).
Expect a “classic” resolution to produce a new trend
When stock market fundamentals first hint at a move up or down, an opposite move often takes place first. Why? There are various possible causes. Think of it as setting the stage. A drop before an uptrend brings in seasoned investors, and a runup induces selling by the same group.
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