Individual investors banding together trend continues to spread. Analysts warn that this wave of increase may quickly recede.
The stock market is at historical highs. The discussion on Reddit's investment forum WallStreetBets has surged, and retail investors are heavily buying low-priced stocks. It is not 2021, and the current hot stocks are not GameStop, AMC, or the bankrupt Bed Bath & Beyond. In the meme stock craze of 2025, popular companies are Opendoor Technology and Kohl's. Michael Arone, a strategist at DWS Investment Management, said, "The new highs have exacerbated people's fears of missing out. Clearly, it seems that there is a considerable amount of liquidity pouring into the market." This all-in gamble was somewhat acceptable in 2021, when stimulus plans from the US government helped support Americans' savings. Now, the job market is weak, interest rates are rising, and mandatory student loan payments have resumed. Some analysts predict that the rise of meme stocks will dissipate at a faster pace. Mike Bailey, research director at FBB Capital Partners, said, "Investors are actively digesting all the positive factors in the market, and concerns about rising risk factors are diminishing. The current market sentiment is moving towards irrational exuberance."
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