You can’t keep a bad investor down. Last year, Generation Z and millennial investors piled into meme stocks, looking to make a quick killing by ramping up the prices of burnt-out companies, such as video game retailer GameStop and movie theatre chain AMC Entertainment.
Day traders lost their minds — and money — chasing instant online gratification, egging each other on through Reddit subgroups and WallStreetBets.
Some even kidded themselves that they were doing social good by sticking it to Wall Street hedge funds that have been cynically shorting these companies to profit when their shares turned to dust.
It was classic late bull market madness, fuelled by cheap money, high hopes and a fear of missing out, and ended in an entirely predictable fashion.
The GameStop share price fell from a peak of $81 in January 2021 to $10 in a month, turning virtual fun into real paper losses.
Free trading app Robinhood, which was at the heart of the action, saw its active user base drop from a high of 22 million in 2021 to about 14 million in June this year as investors ran for cover.
Many assumed the madness was over for good when this year’s bear market struck. But they were wrong.
Meme stocks are back. Investors, it seems, have learnt nothing. All it took was a flash of positive market sentiment and they whipped out their mobiles and started trading.
GameStop and AMC Entertainment once again find themselves in the centre of the storm, joined by another troubled retailer, Bed Bath & Beyond.
Traditional investors like to buy good companies with bright prospects. Meme investors do the opposite, but they have hit on one truth. Any asset is only worth what people are willing to pay for it.
Meme stocks are totally speculative but maybe that’s the point, with Bed, Bath & Beyond rocketing 500 per cent since the beginning of August, David Morrison, senior market analyst at Trade Nation, says.
“Why worry much about trying to make 1 per cent or 2 per cent a month by trading big established companies, when you can double your money in a day if you get lucky?
“And if you’re unlucky and lose money, you can always post copies of your trading statements on WallStreetBets and watch the ‘witty’ comments roll in.”
Meme stocks flew back into fashion at the same time as wider investor sentiment picked up.
“We’ve seen a sharp rally in US equities since mid-June following the protracted sell-off since the beginning of the year. There’s a growing feeling that the bottom is in and the only way is up,” Mr Morrison says.
Investors are working on the assumption that inflation has peaked and the US Federal Reserve can slow the pace of interest rate hikes, then start cutting in 2023 as the economy slows.
They should not get too comfortable with that concept, Mr Morrison warns.
Yes, inflation may have peaked, at least in the US, but the Fed funds rate is still likely to climb higher from today’s range of 2.25 per cent to 2.5 per cent.
In the UK, analysts are warning that rates could peak at 6 per cent, bringing everyone into a very different world.
US stock markets now look overbought, Mr Morrison warns. “If we get a significant pullback, the bears will be out in force again. It’s going to be a volatile end to the year.”
This summer’s meme stock revival is based on “herd sentiment and excess speculation”, just like the original, so approach with caution, Vijay Valecha, chief investment officer at Century Financial in Dubai, says.
We have entered a new era of higher interest rates with reduced global liquidity as central banks turn the taps off and this demands a different strategy.
“Markets are likely to reward only those products and stocks that provide actual value and use case options in the real world,” he adds.
Now is not the time to pursue a get-rich-quick strategy as it could end up making you poorer at an even faster rate.
“Whatever you do, don’t bet your life savings, although, unfortunately, that’s exactly what many meme-fuelled traders have been doing,” Mr Valecha says.
The summer stock rebound looks more like a bear market rally than something more substantial, Chaddy Kirbaj, vice director at Swissquote Bank, says.
Investors have been buying the dip, encouraged by the drop in US inflation in July to 8.5 per cent, down from 9.1 per cent in June.
They want to get in before the Fed starts easing in earnest and markets rocket, but Mr Kirbaj urges caution. Wall Street may be buzzing, but the real economy is in trouble.
“The underlying risks of recession, global trade disruptions, higher costs of production and increased mortgage rates are intact, so investors should be more cautious than excited about the recent market rally,” he adds.\
Mr Kirbaj notes that the 2008 crisis didn’t happen overnight, but took months to materialise. The same could happen again and even slowing the pace of rate hikes may not be enough to revive a struggling economy.
Younger investors aged between 18 and 30 are the driving force behind the meme stocks trade, Philippe Ghanem, founder of global investment gateway SquaredFinancial, says.
That is certainly the case with his company’s younger clients, who are quick to return when the sentiment picks up — and just as quick to stop trading when it falls.
This more “aggressive” investment strategy does not work in the long run, Mr Ghanem says.
“Our clients aged between 40 and 65 are much more conservative and enjoy a notably higher return on investment as a result.”
He believes “sticky” inflation will grind the life out of meme stocks.
“I believe higher inflation is now structural due to factors such as the energy transition, demographics and the cost of building resilience, and will settle around 4 per cent to 5 per cent. If this happens, the craziness should not return,” Mr Ghanem adds.
Others are not so sure, including Walid Koudmani, chief market analyst at financial brokerage XTB.
He says the recent Bitcoin rally shows that investor optimism is hard to crush.
“We could see a significant reaction if Bitcoin broke past $25,000, as returning investors may see that as a potential sign of better things to come,” he says.
The next few months could be tough, but once things ease, it seems highly likely that meme stock madness will return.
Markets have priced in further monetary tightening and are now looking ahead to when the Fed will start to reverse rate cuts to boost the slowing economy, Mr Morrison says.
“This could lead to a rally in all risk assets going into 2023,” he adds.
The current GameStop, AMC and Bed Bath & Beyond bunfight may soon be taking a time out as uncertainty returns, but we could be in for a third round of this nonsense next year. You have been warned.
The years Ramadan fell in May
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
PAKISTAN SQUAD
Abid Ali, Fakhar Zaman, Imam-ul-Haq, Shan Masood, Azhar Ali (test captain), Babar Azam (T20 captain), Asad Shafiq, Fawad Alam, Haider Ali, Iftikhar Ahmad, Khushdil Shah, Mohammad Hafeez, Shoaib Malik, Mohammad Rizwan (wicketkeeper), Sarfaraz Ahmed (wicketkeeper), Faheem Ashraf, Haris Rauf, Imran Khan, Mohammad Abbas, Mohammad Hasnain, Naseem Shah, Shaheen Afridi, Sohail Khan, Usman Shinwari, Wahab Riaz, Imad Wasim, Kashif Bhatti, Shadab Khan and Yasir Shah.
FROM%20THE%20ASHES
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The%20specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
ENGLAND WORLD CUP SQUAD
Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Jos Buttler (wicketkeeper), Tom Curran, Joe Denly, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood
The five pillars of Islam
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The bio
His favourite book - 1984 by George Orwell
His favourite quote - 'If you think education is expensive, try ignorance' by Derek Bok, Former President of Harvard
Favourite place to travel to - Peloponnese, Southern Greece
Favourite movie - The Last Emperor
Favourite personality from history - Alexander the Great
Role Model - My father, Yiannis Davos
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
The specs: 2018 Maserati GranTurismo/GranCabrio
Price, base Dh485,000 (GranTurismo) and Dh575,000 (GranCabrio)
Engine 4.7L V8
Transmission Six-speed automatic
Power 460hp @ 7,000rpm
Torque 520Nm @ 4,750rpm
Fuel economy, combined 14.3L (GranTurismo) and 14.5L (GranCabrio) / 100km
More from Neighbourhood Watch
Killing of Qassem Suleimani
Know your cyber adversaries
Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.
Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.
Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.
Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.
Phishing: Aims to secure personal information, such as passwords and credit card numbers.
Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.
Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.
Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.
Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.
Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.
Zero-day exploit: Exploits a vulnerability in software before a fix is found.
TUESDAY'S ORDER OF PLAY
Centre Court
Starting at 2pm:
Malin Cilic (CRO) v Benoit Paire (FRA) [8]
Not before 4pm:
Dan Evans (GBR) v Fabio Fogini (ITA) [4]
Not before 7pm:
Pablo Carreno Busta (SPA) v Stefanos Tsitsipas (GRE) [2]
Roberto Bautista Agut (SPA) [5] v Jan-Lennard Struff (GER)
Court One
Starting at 2pm
Prajnesh Gunneswaran (IND) v Dennis Novak (AUT)
Joao Sousa (POR) v Filip Krajinovic (SRB)
Not before 5pm:
Rajeev Ram (USA) and Joe Salisbury (GBR) [1] v Marin Cilic v Novak Djokovic (SRB)
Nikoloz Basilashvili v Ricardas Berankis (LTU)
Killing of Qassem Suleimani
WITHIN%20SAND
%3Cp%3EDirector%3A%20Moe%20Alatawi%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Ra%E2%80%99ed%20Alshammari%2C%20Adwa%20Fahd%2C%20Muhand%20Alsaleh%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Mohammed bin Zayed Majlis
WHAT ARE NFTs?
Non-fungible tokens (NFTs) are tokens that represent ownership of unique items. They allow the tokenisation of things such as art, collectibles and even real estate.
An NFT can have only one official owner at one time. And since they're minted and secured on the Ethereum blockchain, no one can modify the record of ownership, not even copy-paste it into a new one.
This means NFTs are not interchangeable and cannot be exchanged with other items. In contrast, fungible items, such as fiat currencies, can be exchanged because their value defines them rather than their unique properties.
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
Company profile
Name: The Concept
Founders: Yadhushan Mahendran, Maria Sobh and Muhammad Rijal
Based: Abu Dhabi
Founded: 2017
Number of employees: 7
Sector: Aviation and space industry
Funding: $250,000
Future plans: Looking to raise $1 million investment to boost expansion and develop new products
Killing of Qassem Suleimani
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
UAE currency: the story behind the money in your pockets
Britain's travel restrictions
- A negative test 2 days before flying
- Complete passenger locator form
- Book a post-arrival PCR test
- Double-vaccinated must self-isolate
- 11 countries on red list quarantine
The years Ramadan fell in May
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
More from Neighbourhood Watch:
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
Killing of Qassem Suleimani
Zayed Sustainability Prize
Terminator: Dark Fate
Director: Tim Miller
Starring: Arnold Schwarzenegger, Linda Hamilton, Mackenzie Davis
Rating: 3/5
if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
More coverage from the Future Forum
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
RIDE%20ON
%3Cp%3EDirector%3A%20Larry%20Yang%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Jackie%20Chan%2C%20Liu%20Haocun%2C%20Kevin%20Guo%3C%2Fp%3E%0A%3Cp%3ERating%3A%202%2F5%3C%2Fp%3E%0A
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
More on Quran memorisation:
SERIE A FIXTURES
Saturday Spezia v Lazio (6pm), Juventus v Torino (9pm), Inter Milan v Bologna (7.45pm)
Sunday Verona v Cagliari (3.30pm), Parma v Benevento, AS Roma v Sassuolo, Udinese v Atalanta (all 6pm), Crotone v Napoli (9pm), Sampdoria v AC Milan (11.45pm)
Monday Fiorentina v Genoa (11.45pm)
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
UAE currency: the story behind the money in your pockets
