Market FOMO Returns as Volatility and Spot Prices Rise Together
Goldman Sachs' Rich Privorotsky described Monday's market session as feeling like 'proper FOMO', where the Nasdaq rose alongside implied volatility. This unusual combination, where spot prices and volatility increase together, indicates that investors are not just becoming more comfortable with risk but are also scrambling for upside exposure while paying to avoid being left behind.
The return of spot-up, volatility-up trading signals genuine FOMO, as investors prioritize upside participation over mere relaxation about risk. Privorotsky's observation highlights the market's shift towards a more aggressive stance, where investors are willing to pay premiums for potential gains rather than simply becoming more confident in their holdings.
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