How to invest wisely in crypto and meme stocks: two industry professionals step in

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There has been no lack of attention to cryptocurrencies and memes stocks over the past 18 months.

Someday it could be people watching a hamster make bitcoin investment decisions. Next are the warnings from US regulators about cracking down on trading in meme stocks and crypto assets.

But with interest in some alternative investments potentially starting to fizzle out from the highest pandemic levels, here’s what two seasoned investment professionals have to say about how to invest wisely in crypto stocks. and the same.

“We’re at this point where the meme stocks phenomenon has dried up a bit,” said Lindsey Bell, chief investment strategist at Ally Invest, in an interview with MarketWatch on Tuesday.

Lindsey Bell of Ally Invest and Mark Hulbert, MarketWatch columnist of Hulbert Finance Digest, talk about investing wisely in crypto and meme stocks.

Bell explained how first-time investors during the pandemic experienced a period of volatility, but also how the government’s stimulus measures have left many people with high levels of liquidity on the margins of money market and deposit accounts. .

“I think what reassures them to stay invested at this point is the fact that they are financially stronger than they were at the start of the pandemic,” she said.

Broker-trader Ally also encourages investors to have little exposure to volatile or risky assets, like cryptos or stocks even, she said.

Risk assets were sold on Tuesday, including popular GameStop Corp meme stocks. GME,
-5.74%
and AMC Entertainment Holdings Inc AMC,
-5.88%,
both of which fell more than 5.7%. Bitcoin BTCUSD,
+ 1.50%
traded around 34% below the crypto’s all-time high in April, according to Dow Jones Market Data. China last Friday declared all crypto-related transactions in the country illegal, as part of its crackdown on digital assets.

The 10-year Treasury yield TMUBMUSD10Y,
1.508%
climbed above 1.5% on Tuesday, while the S&P 500 SPX index,
-2.04%
recorded its worst daily percentage drop in about four months.

This year was marked by all the “down buy” by investors when stocks experienced brief pockets of weakness.

Mark Hulbert, founder and chairman of the Hulbert Financial Digest and longtime MarketWatch columnist, called “bullish stubbornness” among investors in online forums promising to buy the downside or “hold on, against the odds and tides “. , ”At Tuesday’s conference.

“The last low will still be those who say they’ll never sell – when they sell and throw in the towel – it’ll finally be the bottom.”


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