FOMO can give you gains or losses in the stock market

Emotions and behavioral biases always exert a huge influence on investors’ decisions, writes Noah Solomon. Photo by Seth Wenig/AP

And it’s whispered that soon if we all call the tune

Then the piper will lead us to reason

And a new day will dawn for those who stand long

And the forests will echo with laughter —Led Zeppelin, Stairway to Heaven

On April 2 widespread panic ensued when the United States imposed tariffs on imported goods that were more severe than had been anticipated. Broad-based fears that tariffs would cause higher inflation , slower growth or perhaps even a recession in the country spurred a sharp drop in American stock prices, with the S&P 500 suffering a year-to-date loss of 15 per cent at its low point on April 8.

Fast forward to the present, and investors