TL;DR

Seven tech stocks are being hyped to unsustainable levels, echoing past market bubbles. When the inevitable crash comes, retail investors will likely suffer the most.

Story

The Magnificent Seven… more like the Sinister Seven. This meme captures the euphoric delusion gripping markets in 2023, showcasing seven tech stocks (TSLA, NVDA, META, AAPL, GOOG, MSFT, AMZN) hailed as invincible.

It’s a classic pump-and-dump narrative waiting to happen. ‣ Pump-and-dump: Artificially inflating an asset’s price through hype before dumping it on unsuspecting buyers. Remember the dot-com bubble? History rhymes. Just like the ’nifty fifty’ stocks of the 1970s, these seven are priced for perfection, ignoring looming risks: inflation, recession, and geopolitical turmoil.

The comments reveal the blind faith. ‘Buy Google?’ ‘Robotaxis are coming!’ It’s a chorus of irrational exuberance. ‣ Irrational Exuberance: Unjustified market optimism driven by emotions rather than fundamentals. People are betting their life savings on narratives, not sound analysis. Like moths to a flame…

Someone always gets burned. When the music stops, retail investors—the last ones in—will be left holding the bag. Retirement accounts decimated. Dreams shattered. Just like in 2008. And Enron. And every other market mania.

The sad part? It’s predictable. Yet, people fall for it every time.

Advice

Don’t blindly follow hype. Research companies, understand their financials, and diversify your investments. If everyone’s saying ‘buy,’ it’s probably time to be cautious.

Source

https://www.reddit.com/r/wallstreetbets/comments/1ijy4gt/magnificent_7/