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macroeconomics

Do you have FOMO when you invest?

Everyone experiences FOMO, which is the Fear of Missing Out on various aspects of life, but it’s crucial to resist it when making investment decisions. In today’s post, we will learn why I made that statement.

FOMO stands for “Fear of Missing Out.” It’s when people feel anxious or worried about missing out on something exciting or profitable. When we make decisions solely based on FOMO, it can lead to impulsive choices that might not align with our goals. So, remember, while it’s okay to feel FOMO, it’s essential to have strong willpower and stick to your long-term plans.

The easiest way to earn passive income

The best way to have a guaranteed return that can match the inflation rate is to put your money in a high-yield savings account.

When we get a higher interest rate on our savings, it means our savings grow faster over time. It’s the ultimate set-it-and-forget-it way to make your money work for you, without any risk.

Why did Fed raise interest rates again, making borrowing more expensive?

The Fed decided to raise the target range for the federal funds rate from 2.25% to 2.5%.
Inflation is usually driven by strong consumer demand, which is not matched by the supply. Supply bottlenecks with China during the Covid pandemic, Ukraine war, etc have all contributed to a weaker supply of many essential items we use every day. Since many of the supply chain issues can’t be fixed in short term, the Fed is trying to govern the demand aspect of the inflation. By raising interest rates, and making borrowing more expensive, the Fed is hoping to weaken Americans’ willingness to spend money and ultimately bring inflation to its 2% target level.