In this episode of the Trending Report, Tyler Krzciok opens with a familiar observation: while January inspires discipline, optimism, and structured planning, February often brings the first signs of emotional drift in investor behavior. Investors enter the year feeling resolute, committed to staying long‑term focused, and determined to tune out the noise. And in those early weeks—when the market is relatively calm and the plan is still theoretical—that discipline feels solid. But by the time February arrives, the landscape changes. Markets shift, headlines become louder, and a single data point or hot theme ignites doubt. Tyler explains how quickly investors can shift from confidence to questioning as the February fade sets in.
The drift isn’t about capability—it’s about being human. A friend mentions a big win in a trendy sector. A headline announces that a theme is soaring. A week of volatility feels unsettling. Suddenly, investors start wondering whether their carefully built strategy is outdated. They ask if they should pivot, chase the momentum, move to cash, or sit out until things “calm down.” Tyler compares this to the February gym dilemma: the intention was real, but so are the competing pressures that follow.
Tyler walks through the emotional loop most investors experience: plan, feel confident, encounter volatility, question the plan, react emotionally, abandon the strategy too soon, and eventually find themselves starting over again. This isn’t an intelligence issue or a sophistication problem—it’s behavioral. Money naturally triggers emotion, and without safeguards, those emotions can override even the most well‑designed financial plan.
Because February is about relationships, Tyler turns to the two emotions that most directly shape investor behavior: love and fear. Love shows up when investors cling to a past winner simply because it rewarded them before. Even when fundamentals shift or conditions evolve, they hold tight out of attachment rather than evidence. At that point, Tyler notes, it stops being purely about allocation and starts to resemble a breakup conversation—one that can be emotionally complicated.
Fear expresses itself differently. It nudges investors toward the sidelines, convincing them that waiting for a “better entry point” is prudent. But in Tyler’s view, calm markets are a myth. Something is always happening—a policy meeting, an election cycle, a global headline—and waiting for a moment with zero uncertainty often means waiting through meaningful periods of growth. These opposing forces—loving yesterday’s winners and fearing tomorrow’s uncertainty—pull investors toward buying high, selling low, and overreacting at the worst times.
Tyler then highlights an especially powerful emotional driver: FOMO, the fear of missing out. FOMO doesn’t simply say, “You might be wrong.” It says, “Everyone else is winning without you.” It strikes even disciplined investors when a fast‑moving theme dominates the news. Media coverage tends to amplify the urgency, framing trends as opportunities that must be acted on immediately. This temptation to chase can lead investors to overexpose themselves to fads rather than genuine long‑term opportunities.
To counter these emotional instincts, Tyler introduces the concept of moving from FOMO to formula. Instead of making decisions based on instinct or anxiety, investors can rely on clear rules, data‑driven signals, and defined criteria for entering or exiting positions. Formulaic investing might adjust exposure when a trend is supported by evidence, reduce risk when conditions weaken, or exit when the data changes rather than when emotions spike. These strategies don’t eliminate uncertainty, but they replace reactive decision‑making with structure.
Tyler emphasizes that formulaic frameworks aren’t perfect—no strategy is—but they offer an invaluable benefit: they give investors something objective to follow even when emotions run high. When a plan has already predetermined what to do under certain market conditions, investors don’t need to guess, chase, or panic. They simply follow the framework. Even if FOMO remains present, the process is stronger than the impulse.
As Tyler closes the episode, he reminds listeners that they don’t need to become emotionless robots to be successful investors. They simply need a process capable of guiding them through the February fade. Formulaic investing turns reactive instincts into structured decision‑making and transforms the investor’s relationship with the market into one defined by clarity and discipline. In a month centered on relationships, Tyler encourages advisors to help clients repair and strengthen their relationship with investing—moving from “it’s complicated” to something more reliable and intentional.
He ends the episode by reminding listeners that recognizing these patterns is not a failing. It’s an opportunity to recommit to discipline rather than guilt. Tyler signs off with his signature message: stay curious, stay disciplined, and he’ll see you in the next episode.
--
The Trending Report is a monthly commentary series that explores topical trends taking place within the current market and economy. It aims to provide clarity and encourage Advisors and Investors as they navigate and make sense of current market conditions. The ongoing battle between short term emotions and the commitment to long term investing is real. This series seeks to help Advisors and Investors focus their energy on long term success. Hosted and published by the investment professionals at USA Financial, each episode offers valuable commentary and analysis into various economic factors and market movements. By tuning in, our host breaks down complex topics into easy-to-understand information.
The Trending Report is also published via a podcast for easier, on-the-go listening. Subscribe today via Apple Podcasts, Google Podcasts, or your preferred podcast listening.
