GME - Is GameStop Surge After 'Roaring Kitty' A 'FOMO'? Expert Warns 'Retail Investors Need To Be Wary' | Benzinga
A financial expert has issued a warning to investors about the potential risks associated with meme stocks, particularly GameStop Corp. (NYSE:GME).
What Happened: Douglas Boneparth, a certified financial planner and the president of Bone Fide Wealth, advised investors to be cautious when considering meme stocks like GameStop, CNBC reported on Monday. He emphasized the importance of understanding the motivations behind such investments.
“Retail investors need to be wary,” Boneparth said.
“Is [fear of missing out] leading the way or is this legitimately a great opportunity to jump in?”
He suggested that investors should thoroughly research a company’s core business model and its long-term revenue plans before investing in any stock, meme stock or not.
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While acknowledging GameStop’s recent turnaround, Boneparth recommended a more hands-off approach for most investors, suggesting that exchange-traded funds and mutual funds provide automatic diversity by spreading investments across top-performing U.S. ...