SEC Exec Warns Investor Against FOMO as ETF Deadline Approaches
SEC's Lori Schock Advises Against FOMO in Crypto Investments, Urges Diverse Portfolio and Long-Term Planning.
Lori Schock, the Director of the SEC’s Office of Investor Education and Advocacy has warned investors against FOMO (Fear of Missing Out) which could lead them to make quick investment decisions, especially in cryptocurrencies.
She emphasized how risky cryptocurrencies, ICOs, meme tokens, and NFTs are despite their popularity. People often get excited by news on Social Media and end up investing without properly thinking or researching, she said.
While Cryptocurrencies are very trendy, they are unpredictable and very volatile. She warns investors to be careful and avoid investing in cryptocurrencies because it’s trendy
To reduce risk, she suggests mixing different types of investments like stocks, bonds, and a little cryptocurrency. This could help protect inventors from losing massively due to a centrally concentrated investment.
Having a long-term financial plan is important. Schock urged investors to learn more about how compound interest works and pay off their debts
She also recommends using 401(k) plans with employer matching. She believes they offer more secure returns compared to cryptocurrencies.
