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38 days

‘Story’ stocks are smoking hot in 2025. This is how it could end badly for investors. - MarketWatch

1. Many Russell 3000 stocks thrive despite poor profit records. 2. Investors focus on growth potential over current profitability. 3. Momentum trading remains strong, boosting stock prices significantly. 4. Speculative markets may face reckoning if earnings don't materialize. 5. The labor market slowdown could impact stock performance.

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FAQ

Why Bearish?

The focus on storytelling rather than fundamentals could lead to market corrections. Previous speculative trends indicate possible future declines if earnings do not meet expectations.

How important is it?

Given RUA's performance alongside speculative stocks, market trends impacting variant stocks could indirectly affect RUA.

Why Short Term?

Volatility and market corrections can occur quickly in speculative environments, affecting RUA soon.

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