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Retail investors 'craze continues to spread, analysts warn that the rally will fade faster

Internet reports that the stock market is at an all-time high. There is a surge in discussion on Reddit's "investment" forum WallStreetBets, as retail investors are rushing into low-priced stocks. This is not 2021, and the hot stocks today are not GameStop, AMC or bankrupt Bed Bath & Beyond. In the 2025 meme boom, the hot companies are Opendoor Technology and Cole's (KSS.N). "The new highs have exacerbated the fear of missed opportunities," said Michael Arone, strategist at State Street Investment Management. Clearly, there seems to be a considerable amount of liquidity flooding into the market." This desperate gamble will be acceptable in 2021, when the U.S. government's stimulus plan helped shore up Americans 'savings. Today, the job market is weak, interest rates are rising, and mandatory student loan payments have resumed. Some analysts predict that the rally in meme stocks will fade faster. Mike Bailey, head of research at FBB Capital Partners, said: "Investors are actively digesting all positive factors in the market and concerns about rising risk factors have subsided. Current market sentiment is heading for irrational prosperity."

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