On 06 January 2024, the SEC (Securities and Exchange Commission) X account posted a warning to investors.
Lori Schock, director of the SEC's Office of Investor Education and Advocacy, warns against FOMO (Fear of Missing Out) in investing. She stresses the need to resist this trend, which is particularly prevalent in the world of online investments, digital assets and "meme stocks".
Digital assets, including crypto-currencies, 'coins' and 'tokens', as well as 'meme stocks', which are based on popularity on the Internet rather than on traditional stock market values, present specific risks. Lori Schock stresses the importance of not allowing oneself to be influenced by celebrity recommendations and of resisting social pressure.In the face of inevitable market fluctuations, the best strategy remains the creation of a diversified investment portfolio. It is advisable, she says, to include different types of assets, such as equities, bonds and cash, to reduce the risks associated with volatility.
Financial planning is crucial to a secure future. It is important to define objectives and draw up a long-term investment plan. Lori Schock also stresses the importance of paying down high-interest debt and taking advantage of compound interest.Lori Schock also encourages you to use your willpower to resist FOMO. She urges you to stick to your long-term plan and not make investment decisions based on the fear of missing out.
The SEC, after a long struggle against the integration of Bitcoin into the Wall Street financial system, finally had to give in to the approval of Bitcoin spot ETFs. X users were quick to react with humour, seizing the opportunity to tease the SEC.
In this age of financial innovation and revolution, the SEC's message, while cautious, resonates in a context where Bitcoin has taken an increasingly legitimate place on Wall Street. The publication of this advice comes at a historic time for the SEC, which, after years of resistance to the inclusion of Bitcoin as a legitimate asset, has had to adapt in the face of increasing demand for Bitcoin spot ETFs.This change of direction has no doubt not been easy for the regulator, which has long been at the forefront of the battle to prevent Bitcoin from gaining a foothold in the traditional financial market. The irony of this situation is not lost on X users, who humorously point out the paradoxes of this development. Their comments are a reminder that, in the world of investment, nothing is static and that even the most resilient institutions sometimes have to give in to changing markets.
In the midst of the transition to a digital age, the SEC, while maintaining its role as a watchdog, now seems to be navigating uncharted waters, where Bitcoin and other digital assets are becoming unavoidable. The cohabitation of traditional regulation and financial innovation continues to shape a complex landscape, where the balance has yet to be struck.
