Riding the Rollercoaster of Wild Expectations: Seven Mood Swings That Inflated the Dot-Com Bubble Beyond Belief

The Fear of Missing Out

The fear of missing out, or FOMO, played a significant role in inflating the dot-com bubble. This section will explore how this psychological phenomenon influenced investor behavior and led to irrational investment decisions.

As dot-com stocks continued to soar, many investors, driven by a fear of missing out on the internet gold rush, began to invest recklessly. This led to a buying frenzy that further inflated the bubble. Even as warning signs began to appear, many investors chose to ignore them, convinced that the internet was a game-changer that would defy traditional economic rules.