Meme companies stay with us for longer

According to Ben Laidler, global market strategist at eToro, the January phenomenon of meme companies continues. Although their value is below the record level, more and more new meme ETFs are being created, including MEME.

"More broadly, US household equity investments are at a record high, with US equity funds having $900 billion in inflows in the first half of the year, the most in 30 years," Ben Laidler noted.

Meme stocks change their value dynamically, usually as a result of events that take place on social media or discussion forums. The case of Bitcoin is best to present this phenomenon. Its price dropped from a high of $63,000 in April to $37,000. Why? It is mainly the effect of changing the attitude of Elon Musk towards these assets from positive to negative, which he presented on his profile, precisely with the help of memes.

"We've updated BANG, our original meme index (Blackberry, AMC Entertainment, Nokia, Gamestop). The broader MEME index, which includes the top 15 social media companies, confirms that diversification pays off in the long run. contributing to lower volatility and higher returns. However, neither of these groups can boast of profits," Ben Laidler concluded.

(WBJ)