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Nvidia’s strong earnings recently dominated market headlines, and with it came a familiar emotional tug for many investors: FOMO — the Fear Of Missing Out. It’s a natural reaction when one stock appears to “carry the market,” especially in the era of AI enthusiasm. Charlie Wells at Bloomberg highlighted this dynamic in his recent article, What Nvidia Earnings Mean For Your Investment Portfolio, and I was honored to share insights for that piece. The issue isn’t excitement — it’s what we do with it, especially if we’re close to retirement. 🧠 FOMO Is Human — But It Doesn’t Build Retirement WealthWhen we see a stock skyrocket, our brains interpret it like missing out on something essential. It’s wired into us — survival instinct, not financial logic. Ignoring those feelings doesn’t make them go away. Acknowledging them keeps us from acting impulsively. FOMO is normal. Building your retirement around it is risky.
⚠️ The Real Risk Isn’t Nvidia — It’s ConcentrationNvidia is a strong company. That’s not the problem. The danger is relying too heavily on one stock or sector, especially when retirement is near. As shared in Bloomberg: “If you’re close to or in retirement and taking money out, that kind of concentration can be too much. You don’t have the same time to recover if it drops.”
“The question isn’t, ‘Will I nail Nvidia?’ It’s ‘Can I get the return I need to reach my goals without swinging for the fences on one stock?’”
That shift in perspective can remove a lot of pressure. 🏃♂️ Diversification: The Marathon AnalogyIn my book, Running Into Retirement, I compare diversification to running a marathon. Predicting the performance of one runner is unreliable. They could get sick, cramp, or simply have a bad day. But when you look at a field of hundreds or thousands of runners, the results become more consistent. Variability smooths out. That’s what diversification does for your portfolio. 📘 Buy the book on Amazon: You don’t need to bet on the fastest runner. You just need to finish the race. 🏛️ “But Nvidia Is Different…”People once said the same about JCPenney — a company that seemed too dominant to fail. Nvidia is not JCPenney, but the lesson still applies: even great companies eventually face slower growth, competition, or shifting valuations. Retirement investing isn’t about picking heroes. ⏳ Withdrawals Change EverythingDuring your working years, a downturn in a single stock can hurt but is often survivable because you’re still earning and investing. Retirement flips that equation.
A heavy bet on one company magnifies that risk. Diversification reduces it. 🎯 Practical Takeaways for Retirees & Near-RetireesIf you’re within 5–10 years of retirement or already retired:
You don’t have to ignore great companies. 💚 Want More Resources on Healthy Retirement Investing?Explore tools, planning guidance, and retirement insights at: Receive future topics like this through our Healthy & Wealthy Retirement newsletter: Watch the full video breakdown on YouTube: 🧾 Final Thought
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To health and wealth!
Mark Struthers, CFA, CFP®, CRC®, RMA®
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This commentary is provided for general information purposes only, should not be construed as investment, tax, or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable, but is not guaranteed.