August 18, 2022 (Investorideas.com Newswire) Individual investors must exercise maximum caution in the frenzied meme stock trading that’s gripping social media, warns the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.
The warning from deVere Group’s Nigel Green comes during a significant rise in the trading of single stock options, with the 10-day average daily trading volume at a more-than six-month high of nearly 25 million contracts, according to Trade Alert data.
It’s led by Bed, Bath & Beyond, which is about 360% this month. More seasoned meme stocks such as GameStop and AMC have been soaring too, adding 19% and 47% respectively month-to-date.
He says: “It’s like a revival of the trend that had whipped up a frenzy last year, just before things got turbulent in the wider markets.
“Back then, as is likely to happen this time around, many individual investors – often young and inexperienced – got badly burned by the experience.
“I would urge everyone to exercise maximum caution in the frenzied meme stock trading that’s being fuelled by social media and irresponsible reporting in the broader press.
“This kind of investing is extremely speculative and valuations can be expected to be incredibly wild – in both directions. There are genuine risks to people’s wealth here.”
At the peak of the meme stock frenzy last year, the deVere chief said: “I would avoid piling into stocks pumped by social media influencers.
“If you do want the thrill or novelty of chasing big gains, you really should ensure that you have a sound, diversified, long-term plan beforehand.
“There’s a major difference between investing and gambling.”
Nigel Green continues: “Piling into single stocks is the opposite of diversification, which is universally regarded as an investor’s best tool for generating and protecting long-term wealth.
“It is possible to have a forward-thinking, dynamic mindset combined with time-honored investment principles, including diversification, cash flow and profitability.”
In order to create, grow and safeguard wealth consistently to reach your long-term goals – which for most people is financial security and freedom – he says “there’s no substitute” for independent, professional, personal advice.
The deVere CEO concludes: “People investing in meme stocks are playing a financially perilous game.”
t: +44 207 1220 925
e: george@priorconsultancy.co.uk
Twitter: @PriorConsults
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
More Info:
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
