Why AMC's Bull-Versus-Bear Battle Is One to Avoid
Movie theater chain AMC Entertainment Holdings (NYSE: AMC) has been one of the most exciting stocks on Wall Street after its emergence as a meme stock and immense support from retail investors. Meme stocks can be wildly unpredictable, sometimes making significant price moves on little to no news.
But stocks like AMC can be risky to try to trade around; shares have been down almost 40% since the beginning of the year. Before buying shares, banking on a rebound, consider these reasons to pass on AMC.
The market is much different than in 2021 when the meme craze occurred. The Federal Reserve System, which is the central bank of the United States, has begun to increase the federal funds rate, the interest rate that commercial banks borrow at, to combat the rampant inflation taking place.
Source Fool.com
