Many investors are drawn to assets that garner attention from the media and social media platforms. Oftentimes, individuals will invest in assets based on attention or emotion. We saw evidence of this during the 2020 and 2021 markets, when stocks like GameStop (GME) increased by 1,000% in a short period of time, not based on an improvement in fundamental data, but rather by traders propping up the share price and hyping the stock on social media platforms such as Twitter and Reddit. Investments into speculative assets should not be influenced by these manias and, instead, should be determined based on fundamentals and long-term conviction.
This news is republished from another source. You can check the original article here
Be the first to comment