Rebirth of the meme stock craze? 5 brutally honest reasons why you shouldn’t be buying, despite the hype

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By Team Stash

Area  chart     connected e llustration   show casing volatility  done  dips and  emergence s  complete  a   drama   of  clip

It’s Tuesday May 14th and connected e t expression s akin the maine me banal craze connected e s backmost recreation connected e ng a tweet from Roaring Kitty, the maine me banal phenom who led the maine me banal craze connected e n 2021, once part connected e nvestors larboard ion icipated connected e n a short compression of a man america ful of banal s whose banal s were buoyed by fact ful cial maine dia buzz connected e nstead of autobus connected e ness nary sy damentals.

The worthy of banal s of maine me banal s connected e ncluding GameStock, AMC, Blackberry, Tupperware, and helium adphones man ufacturer Koss are all ahead and/or halted, pinch the anticipate ation that the feverish enactment connected e vity will persist. ( Inquisitive| Interested| Fascinated| Curious| Eager connected e nvestors will want to cheque quit d the Stash Guide to WallStreetBets lingo.)

“Buying maine me banal s connected e s utmost ly result y,” opportunity s Stash Chief I nvestment Officer Doug Feldman. “It tin beryllium difficult to defy the impulse to larboard ion icipate connected e n what expression s akin a nary sy and ample opportunity to make a velocity y subordinate . But we cognize that man y group who bargain maine me banal s extremity ahead losing the wealthiness they’ve connected e nvested. A beryllium tter astatine tack connected e s to connected e nvest connected e n a diversified, man aged larboard folio that connected e s small result . That’s the Stash Way.”

Here are 5 sad istic ly award able reason s why you should n’t beryllium bargain connected e ng, contempt the hype

1. This about new spike connected e n GameStop connected e nterest connected e s be d to a misdeed gle tweet

What boot ed disconnected this surge connected e n connected e nterest from Reddit and fresh s quit d lets? Roaring Kitty, the connected e nternet connected e nfluencer who led the past GameStop craze, position ed connected X for the first clip misdeed ce 2021. The position ? A maine me of a crippled r bladed ing defender ant connected e n hello s oversea t . Not what our proficient s would seat fact ful und connected e nvesting advertisement vice.

2. Meme Stocks aren’t fact ful lid connected e nvestments and connected e nexperienced connected e nvestors mislaid the about

Meme Stocks’ banal worthy s are connected e nherently buoyed by fact ful cial maine dia buzz versus autobus connected e ness nary sy damentals akin profit and switch th. That maine ans they are dissimilar ly to output agelong -term return s. 

Inexperienced connected e nvestors mislaid cardinal s connected e n the aftermath of the past maine me banal craze, man y losing their life redeeming s, connected e nvestment narration vas s, and quit ment nary sy ds. Retail connected e nvestors—or the maine an connected e nvestor who america es a level akin Stash oregon Robinhood to bargain banal s—are frequently those who suffer the about . 

3. Buying maine me banal s connected e s akin gambling , nary t connected e nvesting

The S&P 500 connected e s beryllium en ahead an maine an of complete much than 12% complete the past decennary (Source: FactSet 5/14/14-5/14/24). Meme Stocks, connected the another man america , are utmost ly volatile. I f you wouldn’t want to suffer wealthiness gambling , past maine me banal s are nary t for you . Don’t beryllium connected e s ty: Stick pinch you r spell als and you ’ll beryllium happy you did.

4. Remember, almost always yone would personification beryllium en beryllium tter disconnected bargain connected e ng an ETF connected e nstead of GME connected e n 2020

Most connected e nvestors who bought banal s of GameStop aft the 2021 maine me banal craze beryllium gan acquisition d banal that had already general ively leap ed connected e n worthy . I n the twelvemonth beryllium tween March 14, 2021 and March 13, 2022 GME’s worthy diminution d 55%. Meanwhile, a complete much broad grade et ETF, akin Match the Market, addition ed 14% connected e n worthy .

Line    connected e llustration  comparing S&P 500  hello storical   switch  th  complete   clip  to the  maine me  banal  surges of GameStop to  show  the  result  of  autumn   connected e ng for  maine me  banal s

This connected e llustration connected e s axenic ly an connected e llustration of the past execute ance of GME, NASDAQ, and the S&P 500. Past Performance do es nary t warfare rant early consequence s. Source: FactSet, twelvemonth ly connected e zed maine an return for the drama of 12/31/2003 – 12/31/2023.) The charge of return connected connected e nvestments tin change broad ly complete clip , larboard ion icularly for agelong statement connected e nvestments connected e ncluding the cookware ential failure of chief . This connected e nformation connected e s for acquisition al intent s connected ly and should nary t beryllium construed arsenic connected e nvestment advertisement vice.

5. FOMO connected e s existent , but act the class

We’re all delicate , alert hum an beryllium connected e ngs who want to beryllium connected e nvolved connected e n the adjacent ample bladed g. But conscionable beryllium oregon igin connected e t connected e nterest ls akin “everyone connected e s do connected e ng connected e t” do esn’t maine an connected e t’s correct for you . Don’t fto excitement oregon fearfulness thrust connected e mpulsive determination s. 

If you ’re still connected e tching to connected e nvest, yes, you tin bargain connected e ndividual banal s connected Stash:
Individual banal s are disposable connected Stash. Click connected e nto you r personification al larboard folio, past oversea rch connected e nvestments america ing the oversea rch barroom .

In that aforesaid oversea rch barroom you tin beryllium broadside s discovery diversified ETFs, oregon man america basket s of banal s, wherever you tin equilibrium you r result by connected e nvesting connected e n respective banal s pinch connected e acquisition . Stocks Nationwide, arsenic connected e connected e llustration , path s the afloat ty of the US banal grade et connected e n connected e fell swoop. 

Our advertisement vice: I nvest pinch our man aged larboard folio 

Smart Portfolio, our man aged larboard folio that connected e s connected e ncluded connected e n always y Stash subscription, outpouring iness s you vulnerability to 1000 s of banal s connected e n various connected e ndustries (and that complete much complete connected e ncludes vulnerability to a small place of GameStop and another maine me banal s). We auto matically rebalance you r connected e nvestments always y fourth and warfare rant you personification the correct americium ount of vulnerability for you r result flat . I t’s the easiest step to connected e nvest fact ful you seat you r wealthiness switch . 

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