So what exactly is a meme stock and more importantly, how does it affect your investment portfolio?
First of all, meme stocks are stocks that may go up in value quickly without much obvious reasoning.
Recent examples include Gamestop and AMC.
More often than not, they seem to be driven up in price by mainstream investors that are banding together for the sole purpose of increasing the stock’s value and aren’t necessarily based on the company’s actual performance.
So what does that mean for you?
Should you start hunting the next big thing and find your own meme stock? Should you spend hours combing the internet to catch the next wave?
If you are watching the news or listening to “experts”, it could feel like you are missing out.
The truth is that meme stocks may be seen just like other forms of speculation (stock picking, market timing, short sales) and may not be in your best interest as an investor.
So what should you do?
Don’t let your emotions guide your investments.
Instead, take a deep breath, turn off the news and focus on a consistent investment plan with your financial advisor that is specific to you.
*Disclaimer: This video is for informational purposes only. Information throughout this video, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers, believe reliable. Nothing on this video should be interpreted to state or imply that past results are an indication or guarantee or future performance. Financial Planning and Investment Management offered for a fee through Certified Advisory Corp, a registered Investment Advisor.