After cooling off for several months, the hype around meme stocks returned earlier this year. Following the massive short-squeeze rallies last year, most meme stocks crashed due to weak fundamentals and growth prospects. Many meme stocks have suffered the same fate this year and have generated massive losses for retail investors.
Stocks fell sharply to their June 2020 lows after the August consumer price index (CPI) rose to 8.3%, beating economists’ estimates. Investors’ fears over unrelenting inflation may lead to the stock market witnessing further declines as the Fed is expected to raise interest rates aggressively.
