Global FOMO: The pulse of financial markets worldwide

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-07-10 DOI:10.1016/j.frl.2025.107920

Yosef Bonaparte

引用次数: 0

Abstract

We introduce the Global Fear of Missing Out (FOMO) Index, a monthly sentiment measure built from Google Trends data, capturing a persistent psychological force driving global financial markets. The index exhibits high persistence and a robust inverse relationship. To contextualize the economic magnitude of our findings, we clarify that a 10 % increase in the Global FOMO Index is associated with a 1.7 %–2.0 % decline in monthly stock returns, a 2.02 %–2.1 % drop in realized volatility, and a 4 % reduction in the Sharpe ratio. These impacts are amplified in democratic countries, underscoring a political dimension. The Global FOMO Index thus emerges as a novel sentiment metric, explaining cross-country and time-series variation in market dynamics and offering fresh insights into the interplay of psychology, politics, and finance.

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全球FOMO：全球金融市场的脉搏

我们引入全球错失恐惧指数（FOMO），这是一项基于谷歌趋势数据构建的月度情绪衡量指标，捕捉了推动全球金融市场的持续心理力量。该指数表现出高持久性和稳健的反比关系。为了说明我们研究结果的经济意义，我们明确指出，全球FOMO指数每增加10%，每月股票回报就会下降1.7%-2.0%，实现波动率下降2.02%-2.1%，夏普比率下降4%。这些影响在民主国家被放大，突出了政治层面。因此，全球FOMO指数作为一种新的情绪指标出现了，它解释了市场动态的跨国和时间序列变化，并为心理、政治和金融的相互作用提供了新的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance