Investors in highly speculative stocks are being warned by Vanda Research that they may get “burned” due to potential market volatility. The firm notes that certain pockets of the market are particularly vulnerable to unexpected policy changes or growth curveballs.
Early signs on Monday’s trading suggested that the stock market was poised to start the week just shy of its record high, with bullish calls dominating futures action. Oppenheimer Asset Management’s chief investment strategist, John Stoltzfus, has set a target price of 7,100 for the S&P 500, indicating investor confidence in the market’s trajectory.
However, Vanda Research cautions that speculative investors should be cautious, as rapid growth can sometimes lead to unexpected downturns. The firm’s warning suggests that even well-established players in the market may be at risk if they fail to adapt to changing circumstances.
Source: https://www.marketwatch.com/story/the-switch-from-the-speculative-to-the-highly-speculative-may-see-these-investors-get-burned-61a17039