Hertz and Dogecoin Test Investor ‘Common Sense’

Ethan Wolff-Mann – Mon, May 17, 2021

“Before Dogecoin (DOGE-USD) there was GameStop (GME). And before GameStop, there was Hertz (HTZ), the original meme stock whose bankruptcy last May and resulting zombie price surge (and fall and resurge) defined the original meme stock.”

“Now, it’s back and better than ever. If you kept your cheap $1.50 Hertz shares from last summer that were expected to be worth zero dollars in a bankruptcy restructuring, you’ll have quadrupled your money.”

“What you’re getting right now is this great disconnect between fundamentals and finance,” Mohamed El-Erian, chief economic adviser at Allianz, said at the time.

“Clearly there’s some speculative fever going on right now,” Kathy Jones, Charles Schwab’s chief fixed income strategist, told Yahoo Finance.

“Other recent market activity has also changed the paradigm. With a huge crop of investors living through their first bear market and recession in the past year, the traditional slog out of the hole has been completely bypassed. Last year, stocks were at record highs just months after the March bottom in the early stages of the pandemic. While many retail investors doubtless thought the lows were great times to buy — brokerages confirmed lots of retail customers buying the dip— a longer horizon than three months later was probably in their minds. It’s possible that last year has made the young investors feel like a 25-year-old with a motorcycle and a dream.”

“With Dogecoin millionaires, GameStop millionaires, and Hertz flying high again (the Hertz millionaires haven’t appeared in public yet) it’s even harder than it was last year for speculators to be talked out of a viral investment — there’s just too much highly visible upside, not to mention community for those in the forums.”

https://digitalcoinbuzz.com/hertz-and-dogecoin-test-investor-common-sense/