After a few weeks of uncertainty, the market seemed to bounce back early Monday. The S&P closed at a nearly all-time high of over $5,246, even with the release of Wednesday’s upcoming inflation report looming.
Regardless of the results, investors remain optimistic about the future of the market these days. We saw major dips in the S&P and DOW Jones late last year, but a strong recovery over the last few weeks. Meanwhile, meme stocks AMC and GME (Gamestop) are back in the public eye. AMC bounced from $2.91 on May 10th to $6.85 at market’s close on the 14th. GME made a similar jump in the same time frame, closing at $17.46 on Friday, but skyrocketing to $48.75 on Monday’s close. Many will likely look forward to throwing money at these meme stocks, and while some put their money in and quickly sell to make a short profit, most will likely end up losing much of the investment. In 2021, GME skyrocketed from $3-$4 to over $81 in a few days. And while many made out with over 2000% profits, others held their money in GME only to see the price dip back down to the $10-$15 range (losing thousands in the process).
It’s always important to be cautious with your spending, as meme stocks and influencers are going to continue to push you in one direction. While GME or AMC may seem unmistakably attractive at the moment, we continue to recommend that you invest wisely. Only invest money that you are willing to lose, especially in high-risk meme stocks.
While we wait for the outcome of April’s inflation report, there are some resources to keep you financially sound and educated. Check out the articles below if you’re interested in building your financial freedom and staying educated.
Five Responsible Ways to Build Wealth – Bradley Valentin
All About Stocks – Nick Arrington.
