US Dollar and Yen May Rise as Meme Stocks, Coins Warn of Market Excess from freeamfva's blog

US Dollar and Yen May Rise as Meme Stocks, Coins Warn of Market Excess

Signs of market excess began to emerge prior to the 1929 collapse in financial markets that helped trigger the Great Depression. An old industry adage- one that has become an embedded platitude in stories of financial bubbles – states, “When the shoeshine boy gives you stock tips, sell”.To get more news about WikiFX, you can visit wikifx.com official website.
　　This principle still appliesin the 21st century, though the occupation and medium of communication is different. TikTokers and other social media influencers are the new digital canaries in the financial coal mine. Fringe assets with no clear-cut fundamental value have surgedduring the pandemic in large part thanks to their encouragement.
　　These assets include – but are certainly not limited to – shares of GameStop, Bitcoin, and its absurdist descendant Dogecoin. Their spectacular rise can arguably be attributed to four phenomena [not in order of relevance]:Trading apps like Robinhood have helped to bring a younger demographic of traders to the financial fore. While this is not problematic in and of itself, newer users are often less experienced. When combined with user-optimized interfaces that make it easier to trade, this has led to the general gamification of stocks and trading (i.e. the adoption of a video gaming-like approach to platforms and services as well as to trading itself).
　　#2 Growing Interest Among Millennials Engaged in Trading
　　While retail trading was previously associated with an older and more risk-averse demographic, the new paradigm has come to feel more like a game. The influx of younger traders who grew up in a more digital world with these new trading instruments have begun to change the landscape and nature of trading as a whole.
　　#3 Memeification of Securities
　　The rush of younger traders has also brought the social zeitgeist with it. Memes are a key feature of this phenomenon. When memes become associated with or take on the form of an asset – Dogecoin is a prime example – the familiarity that this confers, combined with a trading platform presenting investing in a game-like way, has helped push prices higher.
　　#4 Ultra-Loose Credit Conditions
　　When the pandemic hit, central banks all over the world turned up the credit taps full blast in an effort to avoid a credit squeeze and implosion of the global financial system. While the tsunami of liquidity was met with open arms as a bulwark against credit stress, it has also allowed for rampant speculation. At the end of 2020, the tech-leaning Nasdaq was up over 40 percent and the S&P 500 around 15 percent.
　　However, these returns pale in comparison to some of the outliers, as introduced above. Besides those already mentioned, this also includes shares of Tesla, whose iconic CEO Elon Musk has helped propel the stock to astronomical heights.
　　Below we will explore four rather strange assets that have attracted acute attention in mainstream media after initially starting off on the social/financial periphery.
Dogecoin was created on December 6, 2013 as a joke using the famous Shiba Inu “Doge” meme as the face of the token. For many years it remained a financial pariah until meme culture began to permeate more mainstream conversations and began to be promoted by celebrities and influencers. Its growing popularity came with the new wave of younger, meme-friendly traders.
　　Between January 1 and May 7 of this year, Dogecoin rose by a whopping 13,263.9%. Tesla‘s Musk compounded the cryptocurrency’s gains after tweeting “Doge” and “Dogecoin is the people's crypto”, sending the digital token up over 60% in one day. What started as a joke has led to a market cap of close to $100 billion and wider-spread adoption in retail trade.