Korean retail investors shifted from FOMO to JOMO sentiment following recent stock market crashes. FOMO dominated the first half of the year as KOSPI repeatedly hit record highs, driving late-entry investors into the market. The sharp market decline since last month triggered 18 sell-side trading halts and 5 circuit breakers on the Korea Exchange securities market, with over 90% of investors in some semiconductor leverage products entering loss territory. The crash caused widespread losses among investors who bought at peak prices, fueling online discussions that "not buying was fortunate." Lawyer Kim Eun-yu, who achieved approximately 2100% returns over 5 years through investments in NVIDIA and Palantir, advocates JOMO—the principle of sticking to well-researched companies rather than chasing every rising stock.
Kim Eun-yu Advocates JOMO Investment Approach After 2100% Returns
Lawyer Kim Eun-yu stated via social networking service that "investors caught in FOMO often fail to achieve significant profits by constantly switching stocks, while investors with JOMO trust and wait for companies they have sufficiently studied." Kim, who spent 30 years as a redevelopment and reconstruction lawyer, started studying stocks at age 53. She achieved approximately 2100% returns over 5 years through investments in NVIDIA and Palantir. In a phone interview on the 20th, Kim told Financial News, "Stock investment is like a lifelong business, and the word FOMO itself should disappear from investment culture. Just as you write a business plan when starting a business, you must plan everything from stock selection to buy/sell timing and holding period before investing to avoid being swayed by FOMO."
FOMO Defined by Oxford Research, JOMO Studied in Consumer Behavior Journals
FOMO was systematically defined in a 2013 paper published by Professor Andrew Przybylski's research team at Oxford University. The researchers explained FOMO as "a persistent anxiety that others are having more valuable experiences without you." FOMO subsequently became a representative term explaining herd behavior and irrational investment psychology in behavioral economics and finance.
JOMO (Joy of Missing Out) means "the joy of being okay with missing out." Consumer behavior research defines it as a psychological state of being satisfied with one's own choices rather than chasing every opportunity. A mindfulness study published in the Journal of Consumer Affairs in 2022 analyzed that reducing FOMO and increasing JOMO can improve mental well-being and life satisfaction. A 2023 research paper published in Telematics and Informatics Reports by a team led by Washington State University psychology professor Chris Berry found JOMO positively correlates with reducing social comparison and increasing life satisfaction. From an investment perspective, JOMO came to be used as a principle of long-term investing in companies one fully understands rather than belatedly chasing soaring stocks.
Korean Investors Distort JOMO Into Mockery of Peak Buyers
The JOMO term recently used in Korea is being distorted into a meaning of "mockery" rather than its original definition. As the number of investors suffering losses from the stock market crash increased, the psychology that "it's fortunate I didn't invest" spread. Online communities have seen successive reactions such as "JOMO is more popular than FOMO these days," "FOMO is anxiety about not buying, JOMO is relief about not buying," and "the joy of not holding stocks." The term is also being used to mock individual investors who bought at peak prices, with expressions like "those who didn't buy are winners" and "cash is the best investment."
A financial industry official stated, "There are quite a few cases where investors who belatedly jumped into semiconductors and leverage products swept up by FOMO during the bull market suffered large losses in the crash. In both surging and crashing markets, what ultimately matters is not following others but sticking to your own investment principles."
FAQ
What caused Korean investors to shift from FOMO to JOMO sentiment?
The shift occurred following recent stock market crashes that triggered 18 sell-side trading halts and 5 circuit breakers on the Korea Exchange securities market since last month. Over 90% of investors in some semiconductor leverage products entered loss territory, causing widespread losses among those who bought at peak prices during the KOSPI record highs in the first half of the year.
What investment approach does Kim Eun-yu advocate after achieving 2100% returns?
Kim Eun-yu advocates JOMO—trusting and waiting for companies investors have sufficiently studied rather than constantly switching stocks driven by FOMO. She stated that stock investment is like a lifelong business requiring a complete plan covering stock selection, buy/sell timing, and holding period before investing, similar to writing a business plan when starting a business.
