The Meme Stock Mirage

From 51 cents to $5 in weeks! I missed it again… damn... 👇

Opendoor’s stock just pulled off the kind of rally that makes headlines, making some investors feel like geniuses, and others like failures. Here’s what happened:

A hedge fund manager stood outside Drake’s house with a sign. Retail traders swarmed in. The stock rallied 10x. Then, of course, a client called me: “Should I buy meme stocks? I’m afraid I’m missing out.”

So I asked: “How many hours a week would you like to spend digging into financials and market news?” She laughed: “None. I’ve got a family, a career, and a life. And honestly, I’d find that boring.”

That’s the point. If you’re going to invest in meme stocks, ask yourself:

Are you doing it based on storytelling or fundamentals?

• Stories drive prices in the short run.

• Fundamentals drive outcomes in the long run.

• Luck often feels like skill until it doesn’t.

We’ve seen it before: GameStop (2021), AMC (2021), Bed Bath & Beyond (2023). Prices spiked on hype, then collapsed when the story faded. To me, investing money in rumors and social media buzz is akin to gambling. Fun sometimes, sure, but only with money you can truly afford to lose. Real investing is the opposite. It’s about building a plan that adapts when your life changes, or when the economy truly shifts, not when a meme trends. 👉 Are you building your financial portfolios on stories… or on strategy?