Darold Trinh on Why FOMO Is Out and FOLO Is In: The Psychology Behind 2025’s ‘Wait-and-See’ Investor

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DaroldTrinhonWhyFOMOIsOutandFOLOIsIn:The

PsychologyBehind2025’s‘Wait-and-See’Investors

By Guest deadline September22 2025

Investorsentimentin2025isdenedlessbyambitionthanbycaution Afteryearsofvolatilityandshiftingpolicy signals,manyareholdingback DaroldTrinh,founderofLongWealthCapital,describestheshiftasamovefrom FOMO,thefearofmissingout,toFOLO,thefearoflosingout

Acautiousturn

Thedataunderscorethetrend AccordingtotheInvestmentCompanyInstitute,US moneymarketfundsnowhold about$730trillion anincreaseof$438billionintheweekendingSeptember10 Roughly$434trillionofthatsits ininstitutionalfunds whileretailaccountsfortheremaining$297trillion Yearoveryear assetsinmoneymarket fundsareupnearly16percent reectingthescaleofcapitalretreatingtoperceivedsafety

Thisishappeningevenasequitybenchmarksremainnearrecordhighs “Itislessaboutchasinggainsandmore aboutavoidinglosses Trinhsays Hecallsthisdynamicinvestorparalysis Inhisview rateshocks unevenination prints,andglobaluncertaintyhavecreatedabiastowardinaction

Thepriceofwaiting

Historysuggestscautionhasacost Afterthenancialcrisisin2008 thosewhostayedincashmissedtheearly stagesofoneofthelongestbullmarketsinhistory Thesamepatternplayedoutin2020 whenmarketsrecovered sharplyfrompandemiclowsbeforemanyretailinvestorsfeltcondenttoreturn

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“Theironyisthatbytryingtoavoidlosses peoplecanmisstheperiodsthatcreatethemostwealth”Trinhsays “FOLOismoredamagingthanFOMObecauseitpreventsanydecisionatall”

Fromspeculationtohesitation

Thepsychologicalshiftisalsorootedinmorerecentsetbacks Memestocksthatsurgedin2021collapsedalmostas quickly,wipingoutpaperfortunes Articialintelligencenamesthatdominatedheadlinesin2023deliveredsharp reversalsaftervaluationsranaheadoffundamentals Manyinvestorsarereluctanttorelivethoselosses

“Peopledonotwanttobewrongagain”Trinhsays “Insteadofchasingtrends theyarechoosingnottoparticipate”

Reintroducingdiscipline

Trinharguesthattheantidoteisstructureratherthanprediction Hepointstofundamentalssuchascashow valuations,anddebtratiosastheanchorsthatmattermost Healsostressestheimportanceoflongtimehorizons andscheduledportfolioreviewstoreducetheinuenceofemotion

“Thesepracticesarenotexciting buttheykeepinvestorsengagedwhenfearwouldotherwiseleadtoparalysis”he says

Theoverlookedriskin2025

Whileheadlinesfocusoninterestrates,ination,andpoliticalcycles,Trinhseespsychologyasthebiggerrisk “Marketscanadjusttoeconomicdata,”hesays “Whattheycannotabsorbiscapitalwaitingindenitelyonthe sidelines”

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