As the pros suspected would happen, fundamentals did eventually take over and the meme stocks have mostly returned to something akin to fair value. The only thing that the Redditors proved was that an army of novices acting concert can exploit short-term liquidity constraints to push prices around, but in the long run the stock market does an efficient job of separating winners and losers. Some people have framed the era as a war between Main Street and Wall Street, but the only way retail investors can win that war is by conservatively investing for the long term.
And yet, it seems they’re still trying….
Source: Meme Stocks: The Redditors Should Know When They Are Conquered – Bloomberg
