Meme stocks like Krispy Kreme and Kohl’s surged this week as retail investors embraced the latest meme-stock frenzy. The appeal? Fear of missing out and greed. Despite the risks involved, momentum-driven stocks offer the potential for dramatic gains and a rush of dopamine for investors seeking thrills.

Driven by social media forums like Reddit’s Wall Street Bets, meme stocks are often criticized for their lack of underlying fundamentals. However, modern markets are increasingly influenced by narratives, attracting both individual and institutional investors looking to capitalize on momentum-driven trading. The allure lies in the excitement of gambling on stock prices.

Financial advisors are advising caution when it comes to meme stocks, urging clients to consider the potential risks and rewards. While some may be drawn to the allure of quick gains, advisors emphasize the importance of long-term financial goals and risk management strategies. Ultimately, the decision to invest in meme stocks should align with an individual’s overall financial objectives.

For clients interested in meme stocks, advisors stress the importance of understanding the volatile nature of these investments. Whether treating them as entertainment capital or avoiding the risks altogether, clients must have the staying power to weather market fluctuations. Advisors warn against being swept up in the hype and emphasize the need for a balanced approach to investing.

Read more at Yahoo Finance: Krispy Kreme’s Suddenly Irresistible. What to Do When Clients Crave Meme Stocks