Are MEME stocks making a comeback?
: https://goodmoneyguide.com/analysis/are-meme-stocks-making-a-comeback/
As confidence ramps up, risk awareness inevitably drops. One Wall Street Journal headline (July 7, £) this week captures this speculative trend: Meme Stocks and YOLO Bets Are Back and Fueling the Market’s Rally.

However, the vital question that every prudent investor should be asking now is not whether they should join the fun, but whether these speculative rallies mark the hallmark of a late-stage bull run.

The bulls will probably jump up immediately and roundly reject this categorisation. The market, they point out, continued to surge for a full nine months even after the GME bubble popped in early 2021. The contention is that the current rally still has a long way to go.

The speedy rebound in US equity indices since April has strongly affirmed investor bullish thesis that stocks are still the best bet. (Another, of course, is crypto.) While blue-chips firms have, for now, fulfilled their stocks’ upside potential, capital is flooding into speculative securities in search of better potential gains. Just like the good old days in 2021 when money flooded into every unprofitable stock.

In every market upswing, new securities emerged. In 2021, it was those MEME stocks like GameStop (GME) that captured investors’ imagination. Now, the likes of Coreweave (CRWV) and Aeva Tech. (AEVA) are day traders’ dream stock. Both soared by 400 and 500 percent respectively in two months.