The FOMO Paradox In The World of YOLO
“You only live once”, or YOLO, was coined by Canadian rapper Drake a decade ago in his song The Motto. Since then, the phrase has grown way beyond what anyone would ever imagine and evolved into an entire way of life.
The mantra is now a battle cry for many young risk-takers, typically millennials, when they rationalise a move that others might consider rash. The message — which can be interpreted as “follow your heart” — is a positive motto. It could be as simple as taking a step down the career ladder in exchange for more time with loved ones or as extreme as quitting a job to start a business or focus on a passion project.
In that sense, the YOLO economy is the mass movement of individuals following that mantra in the aftermath of the pandemic. The savings they’ve amassed during lockdown are likely to be put to use for new businesses and output. These will have real economic consequences that outstrip any central bank asset-purchasing programme. This sharp increase in disposable income is the result of a near-total shutdown of the services industry and the introduction of government stimulus checks.
Another element of the YOLO economy is the mass rejection of the 9-to-5, which has forced some prestigious firms to start offering additional perks like continued flexible working hours, lifestyle allowances, and extra holidays. Such radical changes to work arrangements, which will be virtually impossible to reverse, are also the result of the savings amassed throughout the pandemic. Many individuals have enough leverage to reject current working conditions without striking like in the old days. Instead, they simply throw in the towel.
Another lucrative method of embracing the age of YOLO for these millennials has become trading and investing. When the stock market crashed in early 2020, it offered an opportunity for the new breed of millennial investors to buy low. And, given continued government stimulus programmes and low-interest rates, many analysts continue to point out the many opportunities to be had in the markets, even though we’re at new all-time highs.
However, as consensus grows in favour of bullish momentum going forward for many instruments and asset classes, younger investors are more prone to feel anxiety about missing out on winning trades. This idea can be encapsulated in FOMO (Fear of Missing Out), another popular acronym among millennials. However, as one leading financial broker points out, this fear shouldn’t drive trading decisions. Those decisions should instead be a means to a clear and considered end.
Younger generations tend to mix both buzzwords, but YOLO and FOMO couldn’t be further apart. The former is about taking control of your life, while the latter is about the fear of having no control. YOLO has typically been used as a justification for all kinds of half-baked actions. But, if we apply the idea behind the catchphrase, “you only live once” can be interpreted as not allowing fear of failure to hold you back from making a life-changing decision. A decision that you know in your gut to be the right one for you. It might seem a little daunting at first, but having a definite end goal makes it easier to stick to the course of achieving your dreams while concretely gauging success.
Financial broker Libertex believes financial markets can serve as a vehicle to make those dreams come true. That’s why it has embraced the philosophy of ‘Trade for More’, where ‘More’ depends on the individual. It could be whatever individual values most, whether that’s more money, more time at home with family, more freedom to do the things they love or more life and less work.
On the path to ‘More’, Libertex offers a wide range of CFDs in stocks, commodities, and cryptocurrencies, with trading available on its user-friendly mobile app (available on iOS, Android and web browser), which features in-chart technical analysis and trading signals. So embrace the YOLO way of life and ditch the FOMO attitude. Create your own Libertex account today in just one minute.