BLM and trading

With all that has gone on in the US I’ve seen two companies trend making big waves. Partially due to ‘Buying black’ trending on social media as these are black owned companies.

One of these is UONE
https://finance.yahoo.com/quote/UONE/

Another is Carver Bancorp
https://finance.yahoo.com/quote/CARV/

Trading platforms like Robinhood have seen similar penny stocks take the foreground to create a buzz.

What interests me is how companies who benefit from this move forward. Because the risk is bigger with such stocks once the “cool factor” fades.

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Perhaps we’re seeing a change in how people invest moving forward @Ves. There’s a clear trend forming of more people investing where their passions lie rather just simply for profits or dividends.

I know a lot of friends i’ve spoken to lately are investing in areas they want to see flourish in the future, or products they believe in and want to support. Younger generations aren’t just focusing on analysts reports or company figures, they’re investing where they believe in.

I think the risk here, as you mentioned, is what happens once or if the “cool factor” fades. Unfortunately with lessor experienced investors, a drop in the share price generally leads to a mass pullout… maybe this is just the the lack of patience in the smartphone era we live in! :sweat_smile:

Perfect example was the hype around Beyond Meat this time last year… it kept growing and growing before dropping from USD 230ish down to USD 70. Granted it’s now climbing back (although not that high), but how many people panicked and sold out once their investment returns plummeted.

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I’ve noticed that as well. The millennium investors, as the media likes to call them, align their personal values to what they invest in.

I think the risk here, as you mentioned, is what happens once or if the “cool factor” fades. Unfortunately with lessor experienced investors, a drop in the share price generally leads to a mass pullout… maybe this is just the the lack of patience in the smartphone era we live in!

Yeah. There is still a big gap between those looking for a quick win and those playing the long term game and looking to grow a passive income through dividends.
I mentioned dividends to a couple of people and they didn’t know what it was exactly. But they only knew about buy low and sell high was important.

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I think it comes down to the different patience levels too and the goal looking to be achieved. Unfortunately in the tech era we live in and with such easy access to credit it’s certainly created a theme of people wanting instant gratification and not having the patience to wait for their capital to grow. I mean look at companies like Klarna pay, if you can’t afford to pay for that T-Shirt up front, should you really be buying it now?

In the mindset of an investor who expects fast wins, a dividend stock will never seem attractive as it can be a long drawn up process with small payments at long intervals.

Unfortunately the buy low/sell high fast paces mentality is no different to gambling on a football game really. It can be fruitful on occasion but more often than not, you’ll end up losing your capital! Nobody really has a crystal ball :wink:

A combo of long term and short term can make investing more interesting though I think, it can be fun taking a bit of a risk and testing the ‘gamble’ but I firmly believe it’s important to consider your long term strategy too and ensure you’re investing your capital in a mixed basket if case those gambles don’t pay off.

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Well said

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