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FOMO and attention-grabbing stocks
In one line: Buying what everyone is talking about.
Evidence
Barber and Odean (2008): individual investors are net buyers of attention-grabbing stocks: stocks in the news, with unusual volume or extreme one-day returns. 'FOMOThe urge to jump into a trade because everyone else seems to be making money.' itself is not a formal term in this research.
Barber and Odean (2008): individual investors are net buyers of attention-grabbing stocks: stocks in the news, with unusual volume or extreme one-day returns. 'FOMOThe urge to jump into a trade because everyone else seems to be making money.' itself is not a formal term in this research.
Recent results play a part too. Greenwood and Shleifer (2014) found investors expect high returns after high past returns. But the returns that actually follow tend to be lower.
Related
Sources & studies
- Barber & Odean (2008), Review of Financial Studies
- Greenwood & Shleifer (2014), Review of Financial Studies
Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.