Hello Investor,
Are we suffering from ‘Neomania’ or have we become ‘Neomaniacs’?
Neomania is a new term coined by well-known author Nicholas Taleb.
It is the mania for all things new and shiny.
When iPhone was launched in 2007, it was certainly a device all wanted to have. However, the craze of having a latest iPhone has become irrational race of show off. Same goes with buying a new, fancy and shiny car. Obsession to be among the first to buy new car take waiting period to months.
Hunger of more feeds and information, choosing get-rich-quick schemes, addiction to social media etc is sign of a ‘Neomaniac’.
Covid in 2020 has made lot of investors turn Neomaniac. Short term volatility has made lot of investors turn to other jazzy and hyped investments like precious metals, Self-help stock trading and crypto currency. Due to additional available time, investors try to fetch information just to get easy returns in short time.
A common man is locked in cage of own belief. The need of the hour is to understand that every asset class has its own performance cycle. There is no short cuts for making money. By hopping different asset classes to imitate others and chase returns, investor may lose lifelong savings.
Don’t be a Neomaniac. Stick to your principles.