© Reuters. 3 popular Reddit stocks to liquidate before another market sale
The stock market is expected to remain under pressure in the near term due to concerns about rising inflation. As the short wallstreetbets saga has eased significantly, analysts believe three of the most talked about Reddit stocks – Palantir Technologies (PLTR), DraftKings (NASDAQ 🙂 and Virgin Galactic (SPCE) – will suffer massive fixes in the short run. term. . We therefore believe that it is wise to liquidate your investments in these as quickly as possible. Let’s take a closer look: Market participants seem happy with the U.S. government stimulus measures and improving economic data. As a result, the stock market continues its incredible rally this year except for a few short-term pullbacks. However, as consumer spending steadily returns to pre-pandemic levels, rising inflation has started to worry investors.
Although the Fed views any rise in inflation as temporary, economists fear that rising inflation may force the central bank to tighten policies sooner than expected. To add to this concern, some retail investors are speculating that wealthy investors have started taking profits now, ahead of the government’s proposed increase in capital gains taxes. As such, some investors are moving away from equities to move towards more secure, fixed income assets. As a result, overheated stocks, especially in the tech space, have already started to see a correction.
The frenzy of brief pressure from millennial investors on Reddit’s r / wallstreetbets (WSB) chat room has piqued the interest of retail investors and Wall Street analysts to follow the stocks discussed on the forum. Because preferred WSB stocks generally have weak fundamentals, analysts are pessimistic about the outlook for Palantir Technologies (PLTR), DraftKings Inc. (DKNG) and Virgin Galactic Holdings Inc. (NYSE :). We believe that a much anticipated market liquidation could bring them back to earth soon. So it is wise to get rid of these stocks now.
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