(Bloomberg) — Eleven interest-rate hikes by the Federal Reserve have done little to break the gambling fever gripping the US stock market.
Most Read from Bloomberg
In episodes strikingly similar to those in the wildest moments of the early pandemic — think GameStop Corp. and AMC Entertainment Holdings Inc. — investors are frantically bidding up obscure stocks only to then watch them crash spectacularly. The very latest example: VinFast Auto Ltd, an greater-fool-theory.html” title=”Traders Burned as VinFast's Rally Soars by 504%, Challenging Greater Fool Theory”>unprofitable electric-vehicle maker that at the zenith of a four-week trading frenzy had a market value greater than McDonald’s Corp. and four times that of General Motors Co. The stock has sunk roughly 80% in the eight days since.
It all suggests that the greater fool theory has now become a prominent, and perhaps permanent, feature of the investing landscape in a country where gambling on everything from football to table tennis to whether Britney Spears will get married next year is now just a click away.
VinFast became the latest…
2023-09-09 07:00:00
Source from finance.yahoo.com
rnrn
(Bloomberg) — Eleven interest-rate hikes by the Federal Reserve have done little to break the gambling fever gripping the US stock market.
Most Read from Bloomberg
In episodes strikingly similar to those in the wildest moments of the early pandemic — think GameStop Corp. and AMC Entertainment Holdings Inc. — investors are frantically bidding up obscure stocks only to then watch them crash spectacularly. The very latest example: VinFast Auto Ltd, an unprofitable electric-vehicle maker that at the zenith of a four-week trading frenzy had a market value greater than McDonald’s Corp. and four times that of General Motors Co. The stock has sunk roughly 80% in the eight days since.
It all suggests that the greater fool theory has now become a prominent, and perhaps permanent, feature of the investing landscape in a country where gambling on everything from football to table tennis to whether Britney Spears will get married next year is now just a click away.
VinFast became the latest…
2023-09-09 07:00:00
Source from finance.yahoo.com
rnrn