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Meme Stocks

Observant1
edited July 25 in Other Investing
Social media speculators have recently turned several stocks into meme stocks.
These so-called "DORK" stocks are: Krispy Kreme (D), OpenDoor (O), Rocket Cos. (R) and Kohl’s (K).
Meme crazes occur during periods when investors exhibit great market enthusiasm.
The VIX fell below 15 on Thursday—its lowest in five months.
This is a dramatic decrease from early April when it topped 60.

"What comes next? Goldman’s research says exuberant times can get more extreme for a while.
Over a 35-year horizon, sharp rises in speculative trading have preceded above-average three-,
six- and 12-month returns for the S&P 500, after which the market has faltered."

"The return of meme stocks might fit that timeline again,
but it’s a warning to edge closer to the exits before the music stops."

https://marketsam.cmail20.com/t/d-e-sukhthd-duklntldl-r/

Comments

  • hank
    edited July 25
    Thanks @Observant1 for the post. I thought the point on the VIX noteworthy.
    -

    Opening lines from Bill Fleckenstein’s commentary tonight:

    ”The tractor beam was at work towing stocks higher once again, with the Nasdaq up almost 0.5% and the S&P about half of that. There was no news to impact trading, and it continues to be the case that the passive bid and mechanical flows just keep grinding the market upward.”


    From ”Mechanical Flows” - The Daily Rap for Friday July 25, 2025
    (Subscription Required)
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