With markets pushing to new all-time highs, many investors face the classic behavioral trap

October 6, 2025

Sebastian’s Strategy

with Sebastian Borsini

With markets pushing to new all-time highs, many investors face the classic behavioral trap of FOMO — the fear of missing out. It’s tempting to chase what has already run, or, on the flip side, to sell too early out of fear of giving back gains. Both are emotional decisions that can work against your long-term success.

History shows that staying invested is the best strategy. From 1990 through 2020, the S&P 500 returned about 10% per year — but if you missed just the 10 best trading days, your return was cut in half. Miss the 25 best days, and your return was nearly wiped out. The catch? Many of those “best days” came just after the worst ones, meaning you only capture them by staying invested through volatility.

Discipline matters most when emotions run hottest. Reviewing allocations, rebalancing where appropriate, and staying diversified helps you benefit from rotations without reacting to every headline. The real strategy is preparation, not prediction.

Feeling overallocated? We offer a complimentary portfolio review which analyzes each of your holdings and generates a risk score for your overall portfolio. We then compare that to your personal comfort level from our questionnaire. It is an easy way to see if your investments are aligned with your goals and run stress tests against historical scenarios. You don’t even need to come into the office; send me your holdings/statement to sebastian@greenbergfinancial.com to get started.