It’s been a weird year for the old guard of the financial markets industry.
Consider the events of two weeks ago: U.S. employment data trailed economists’ forecasts by the most on record, and more than 130 companies in the S&P 500 reported earnings.
Now consider what created the most buzz in markets: a massive rally in Dogecoin amid speculation that Tesla Inc. founder Elon Musk would give the cryptocurrency a boost while hosting Saturday Night Live.
The pandemic, and the nascent recovery from it, have caused a whiplash in the fundamentals underlying the value of asset prices everywhere. Yet at the same time something else has happened: The whimsical entertainment value of some assets has undeniably emerged as a reason investors are bidding prices higher.
Dogecoin, which started as a joke based on memes about a talking dog with a limited vocabulary, is hardly the first example. Funny memes also played a huge role in the frenzy in the shares of GameStop Corp. and other companies that participants on Reddit’s WallStreetBets forum promised to send “to the moon” earlier this year. Even since the Reddit mania has worn off, GameStop is up more than 750% this year —a return that would have required an investor in the S&P 500 to buy and hold the index for about a quarter-century. And good luck holding it long enough to match the 21,000% Dogecoin rally over the past year. Elsewhere, the craze in nonfungible tokens, or pieces of digital art that live on the blockchain and in some cases sell for millions of dollars, is perhaps the purest example.
Continue reading your story on the app
Continue reading your story in the magazine
Young U.S. Jews Shift on Israel
Millennial and Gen Z progressives question American support of Israeli policies, a point of tension for the Democratic Party
A British tonic maker aims to conquer the U.S. with its premium mixers
Welcome to the Trump Coast
The former president’s strategic retreat to Mar-a-Lago has helped turn Florida into a new home base for Republicans
THE SEDITION HUNTERS
Amateur sleuths pore over photos and videos online to ID Capitol rioters
The FOMO Economy
From AMC to Dogecoin to houses, buying seems driven as much by anxiety as by hope
KING OF CARDS
Sports trading cards are having a moment. And no one promotes the industry like Ken Goldin
Pay Attention to the Man Behind the Curtain
Vladimir Putin’s tolerance for criminal hackers will be on the agenda when he meets with President Biden on June 16
It's TEQUILA O'CLOCK In NYC
Jimmy Buffett’s Margaritaville is a hit song, a chill state of mind, a billion-dollar marketing empire, and the new best worst attraction in Times Square
Is Streaming the Limit for Sky?
As its content providers start online services, the broadcaster pivots to create its own shows
China's Dangerous Diplomacy
Why the Wolf Warriors won’t change course
DOGECOIN: THE NEW BITCOIN IS HAPPENING RIGHT NOW
DISCLAIMER The Content of this article is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer by HII or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content presented is the information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the article or website constitutes professional and/or financial advice.