FOMO, or Fear Of Missing Out, reflects the psychological aspect of investing where individuals are influenced more by emotions and the fear of missing out on market opportunities than by objective numerical analysis.
"I assess equity markets with the C-F-E framework, where C stands for corporate earnings, F for flows, and E for event risks. Corporate earnings have grown well over the last two years, with Nifty 50 earnings per share rising 30% from 650 to 850. So today with Nifty 50 at around 20000 levels, we are trading at 23.5 times trailing earnings."