To Meme, or not to Meme?

Whether it’s AMC or Game Stop, crazed meme stocks have been getting a lot of attention in the last 18 months. According to a recent research analysis by Openmarkets Group, while Baby Boomers and Generation X are making money on meme stocks, Millennials are losing money.

Openmarkets report that with an evenly weighted basket of 11 meme stocks, investors over 40 would have experienced an average gain of 1.29%. This is compared to the investor who is under 40, who would have experienced a loss of 1.93%.

This is because young investors are more likely to get duped chasing big gains trading on social media hype - instead of doing well thought-out fundamental analysis.

Openmarkets chief executive Ivan Tchourilov said “And considering we are seeing the largest international transfer of wealth in history; this is a very worrying trend. We would advise caution, and for investors to research, seek professional advice, and gain experience before trying to time the market or make quick gains, especially in meme stocks.”

This research clearly highlights the risk of throwing money at social media-hyped meme stocks. Investors should be taking a long-term approach and basing their strategy on the affordable advice of a professional to ensure a prosperous investment future.

Tchourilov, I. (29 September 2021) “Meme too? An analysis of whether meme stocks actually make people money.” https://openmarkets.group/news/meme-too-an-analysis-of-whether-meme-stocks-actually-make-people-money