Meme Stocks May Hit Headwinds as Investors Shun Risk (2 min read)
Meme stock rallies might be coming to an end as inflation and interest rates are on the rise, and market volatility continues amid the fear of a recession. Analysts believe that in a slowing economy, the cost of capital will be higher and investors tend to favor lower risk and profitable businesses. Meme ETFs like the Roundhill Meme ETF (MEME) and the VanEck Social Media Sentiment ETF (BUZZ) were down 60% and 39.1% respectively this year while the S&P 500 was only down 18%.