Global FOMO: The pulse of financial markets worldwide

•We constructed a novel Global FOMO Index using Google Trends data.•Elevated FOMO predicts lower returns, volatility, and Sharpe ratios.•A 10 % rise in FOMO leads to a 1.7 %–2.0 % decline in monthly stock returns.•FOMO effects are stronger in democratic countries with open media. We introduce the Gl...

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Bibliographic Details
Published in:Finance research letters 2025-11, Vol.85, p.107920, Article 107920
Main Author: Bonaparte, Yosef
Format: Article
Language:English
Subjects:
Behavioral finance
Global FOMO index
Google trends
Market sentiment
Political economy
Sharpe ratio
Stock returns
Volatility
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