AMC Stock Surge: Do You Have 'FOMO'? How To Buy Hot Stocks With Less Risk | Summary and Q&A

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June 7, 2021
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Investor's Business Daily
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AMC Stock Surge: Do You Have 'FOMO'? How To Buy Hot Stocks With Less Risk

TL;DR

The FOMO ETF allows investors to access trending stocks like AMC and GameStop while managing downside volatility.

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Key Insights

  • πŸ’ The FOMO ETF is designed to give investors access to trending stocks while managing downside volatility.
  • πŸ’ By balancing meme stocks with other types of stocks, the FOMO ETF aims to provide smoother returns for investors.
  • πŸ–±οΈ The ETF uses computer algorithms and a weekly rebalancing strategy to identify and stay in tune with the hottest areas of the market.
  • πŸ’ The FOMO ETF considers both price and volatility when selecting stocks, avoiding highly volatile stocks and buying stocks when they are low.
  • πŸ’ The FOMO ETF can be a valuable addition to an investor's portfolio, with a suggested allocation of 10-40% depending on the investor's risk tolerance.
  • πŸ‘Ύ Investors interested in SPACs can also consider the dspac ETF, which focuses on companies that have come out of SPAC mergers and can provide unique opportunities.
  • πŸ’ The dspac ETF and the FOMO ETF can be used to diversify a portfolio and capture potential gains from different market trends.

Transcript

meme stocks like AMC and GameStop are once again getting a lot of attention and though they can skyrocket in the short term their volatility is a concern for investors looking for steady outperformance but for those who want to ride the wave of what's trending there's an ETF for that the recently launched FOMO ETF joining me now to discuss is Matth... Read More

Questions & Answers

Q: How does the FOMO ETF manage the high volatility of meme stocks?

The FOMO ETF uses a weighting methodology that considers downside volatility, ensuring a more tempered exposure to meme stocks. It also balances the portfolio with other types of stocks to smooth out returns.

Q: How does the FOMO ETF identify trending stocks?

The FOMO ETF uses computer algorithms to identify stocks in strong uptrends. It also takes into account stocks that have recently sold off, as the market tends to flow from previously successful stocks to recently sold-off stocks.

Q: How does the FOMO ETF mitigate the risk of buying stocks at their peak?

The FOMO ETF considers both price and volatility when selecting stocks. Stocks that have had large price increases but with high volatility may not make it into the portfolio. The ETF aims to buy stocks when they are low and have more favorable risk-return profiles.

Q: Is the FOMO ETF suitable for investors interested in SPACs?

While the FOMO ETF focuses on trending stocks, there is a separate ETF called dspac that targets companies that have come out of SPAC mergers. The dspac ETF provides exposure to this specific asset class, which can be highly volatile.

Summary & Key Takeaways

  • The FOMO ETF provides investors with access to meme stocks, cryptocurrencies, and value stocks, while balancing them against other types of stocks for smoother returns.

  • The portfolio is rebalanced weekly based on computer algorithms that identify stocks in strong uptrends and those that have recently sold off.

  • The FOMO ETF aims to stay ahead of the curve by buying stocks when they are low, considering volatility, and avoiding stocks that have already made big moves.

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