MarketWoes of the week. Is the meme stock dead?

In this weeks market review, we provide an overview of the shaky state of the financial markets. We’ll show that now is an opportune time for the style factor?Value. Read down to where we ask the big question "Is the meme stock dead?" and investigate the mania of meme stocks. You can visit last weeks market review?here. Let's begin with a look at notable performances over the past week.

MarketWoes

In the past week, the stock market experienced a significant wobble with the S&P 500 (SPY), Nasdaq-100 (QQQ), Russell 2000 (IWM), and the Dow Jones Industrial Average (DIA) all recording losses of nearly -3%. This was the?worst week of the year?for the S&P 500, Nasdaq, and the Dow. Read the full article here.

Spring for the S&P 500?

Seasonality charts can be used to identify patterns or trends in a stocks performance during specific times of the year. We've plotted the average monthly S&P 500 return over the past 17 years.?Historically, March has been a positive month for the S&P 500, returning 1.5% on average. Will we see the trend continue in 2023? See the chart in the online article here.

The value of Value

Value investing is a famous strategy that has historically performed exceptionally well, by identifying undervalued companies that eventually outperform the market. However, over the past decade, value has been lacklustre, leading many to question its efficacy. A quick Google search will yield hundreds of articles?claiming the demise?of value investing. We’ve analyzed the current opportunity of value charts and the report is available online?here. Suffice to say, it should not be discounted.

Is the meme dead?

The meme stock craze of the past few years has been one of the most captivating phenomenons to observe. Need a reminder? In 2021/2022, a group of individual investors on Reddit's WallStreetBets and Twitter coordinated buying certain stocks that were heavily shorted by institutional investors. The most prominent meme stocks include GameStop, AMC Entertainment, BlackBerry, Nokia, and Bed Bath & Beyond.

To assess its performance, we created a portfolio of the top 10 most popular meme stocks starting in January 2021. Within a few months, the portfolio generated?spectacular returns, almost quintupling by July 2021. However, it has since experienced a lengthy and painful drawdown of over 60%. See the analysis and read in full online here.

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