3 "YOLO Stocks" to Buy Now
If you're a member of the Wall Street investment crowd, 2020 has been a humbling year. Although calls about a pandemic-afflicted financial meltdown were spot-on as second-quarter GDP decreased by a record figure, supporting calls about the stock market collapse have been laughably wrong. After a brief swoon in March, stocks continue to advance and many are now sitting near all-time highs.
To add insult to injury, there was one group that fared much better than Wall Street's finest: younger retail investors, often derisively referred to as the "dumb money" or their preferred nom de guerre: "YOLO traders" (YOLO being an acronym for "you only live once," a term reserved when one does something that appears to have a poor cost/benefit construct).
The risky behavior has been rewarded so far for many of these YOLO traders: a Goldman Sachs research note found the most popular stocks on Robinhood Brokerage (YOLO traders' platform of choice) significantly outperformed hedge funds and mutual funds in 2020. Not only are YOLOers picking better companies, according to Societe Generale, but they also had impeccable timing by diving in when markets bottomed in March.
Source Fool.com
