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MEME
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How to build an anti-meme portfolio

1. Meme stocks often rise and fall rapidly based on social media interest. 2. The Roundhill Meme ETF closed with a 30.5% loss, reflecting lack of investor interest. 3. Quality stocks have historically outperformed junk stocks by 7.7 annualized percentage points. 4. 17 out of 20 current meme ETF stocks have negative earnings. 5. The average price-to-sales ratio for meme stocks is severely inflated compared to S&P 500.

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FAQ

Why Very Bearish?

The performance and metrics of meme stocks indicate poor long-term returns; historical averages suggest meme stocks lag quality stocks significantly.

How important is it?

The article provides essential insights on meme stocks' viability and investor sentiment, which could crucially influence trading behavior.

Why Long Term?

Given the historical underperformance of meme stocks, negative price trends are likely to persist over time, similar to past trends in 2021 and 2022 post-pump dump cycles.

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