"FUD" is a shorthand term for a concept in business known as "fear, uncertainty and doubt."
When someone uses the term, they are most likely criticizing what they see as bad faith or uninformed expressions of bearish pessimism.
Being on the lookout for FUD might help you if you're prone to overreacting to news that might affect your portfolio. But on the other hand, investors should be careful not to minimize the significance of new information that might challenge their prior assumptions.
Here are a few things to consider when you're facing down FUD.
Fear is the principal component of FUD. Some have suggested that FUD is the opposite of FOMO, or "fear of missing out." Sufferers of both FUD and FOMO feel anxiety about their investment decisions. When you have FUD, you might think it's time to sell your investments; you might be predisposed to buy when you have FOMO.
Fear can lead to rash decisions that you might later regret. If you're feeling worried about your portfolio, or even a specific component of it, a financial adviser may be able to help you make a more cool-headed decision.
Uncertainty. There's no such thing as a sure bet in investing. Nearly every asset in your portfolio will experience some degree of volatility, though some are less risky than others.
Bonds, for instance, tend to have more predictable returns over time, but they often appreciate more slowly than other investments might. On the other hand, products such as cryptocurrency and individual stocks may have wild swings in value, potentially bringing larger rewards.
