Skepticism is why momentum works in stocks. People tend to be afraid to buy, or even want to short, stocks that have just risen a lot. That's why it may take a while for a stock to rise to its true price after new information comes out.
The momentum behind NVDA as well as some other tech stocks right now (SMCI, META, NFLX) is frankly stunning. Nary a dip for 6 months. There is so much FOMO in the AI trade that I don't think it crashes back down to earth very soon. Still I'm way too scared to try to get in late.
And in this case the F in FOMO is real. Not just a feeling of missing out, but fear that all your other investments are going to zero as AI replaces entire industries, for example.
The momentum behind NVDA as well as some other tech stocks right now (SMCI, META, NFLX) is frankly stunning. Nary a dip for 6 months. There is so much FOMO in the AI trade that I don't think it crashes back down to earth very soon. Still I'm way too scared to try to get in late.
And in this case the F in FOMO is real. Not just a feeling of missing out, but fear that all your other investments are going to zero as AI replaces entire industries, for example.