Proceed With Caution When Considering These 5 Ultra-Popular Stocks

Most people may associate the fear of missing out (known as FOMO) with their social lives, but it applies to investing as well. Hearing about popular stocks may lead some to capriciously picked-up shares without doing the proper investigating in an attempt to avoid missing out on the next big things. But it doesn't take an investing wizard to recognize that this is hardly a sound approach.

Investors  may want to think twice before adding these names to their portfolios: Lithium Americas (NYSE: LAC), Mullen Automotive (NASDAQ: MULN), NXP Semiconductors (NASDAQ: NXPI), Rivian (NASDAQ: RIVN), and Sunrun (NASDAQ: RUN). Here's why.

Enthusiasm for electric vehicles (EVs) continues to rev the engines of growth-oriented investors, but interest in this area transcends the EV manufacturers; investors are also paying close attention to EV-related stocks like those focused on lithium production. It's unsurprising, therefore, that Lithium Americas is gaining popularity right now.

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Source Fool.com