Mastering the Madness: Seven Relative Strength Movements Fueling the Meme Stock Frenzy

The FOMO Factor

The fourth movement is the Fear of Missing Out (FOMO). As a stock begins to rise, more investors jump on the bandwagon, hoping to profit from the trend. This fear-driven buying can cause a stock's price to increase even further, creating a feedback loop. The FOMO factor is a significant contributor to the volatility seen in meme stocks, demonstrating the emotional aspect of investing.