Handling the FOMO

Bonus Acorn: A quick idea for those feeling exposed to a blow off top in US Tech

Handling the FOMO

I know I am supposed to be working hard on the promised auto-related Acorn. I’m on it! However, it struck me that however well thought through and constructed that idea might be, it does not address the jumbo elephant in the room. If we are about to see another year routing of all asset classes by large cap US Tech, can you and I afford to miss it?

I wrote the following in the second section of the Monday notes yesterday:

“One of my favorite weekly listens is Zach Abraham’s Know Your Risk Radio podcast which now has a terrific short-form daily version featuring our friend (the ‘brain trust’) Chase Taylor. Zach is a value guy and his frustration with valuation multiple insanity in US stocks is currently reaching fever pitch. But he knows better than to fight it.

This weekend, he got to the “we may just need to load up on QQQ with a tight stop” stage of grief. Zach sounds like he is an excellent RIA that runs a safety-first approach to retirement planning. However, he has a business to run and missing out on bull markets is much worse for retention than saving clients from losses in a downturn. I am sensing FOMO everywhere.”

I just got back from walking the dogs on the beach while listening to the second part of Zach’s show, this bit in conversation with my buddy Chase. I found myself feeling that I needed to set out a FOMO immunization plan for readers that offered a (possibly superior) alternative to loading up on the Nasdaq 100 with a tight trailing stop.