Meme stocks are rallying again – and that's bad news for the market

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With the benefit of hindsight, that meme-stock madness marked the tail-end of years of steady stock-market gains – because just over a year later the Federal Reserve started aggressively raising interest rates, popping the"history could be about to repeat itself

, pointing out that the benchmark S&P 500 tends to fall when the gap in performance between meme stocks and the consumer staples sector widens to over 10 percentage points. Meanwhile, DataTrek Research co-founder Jessica Rabe said meme stocks' recent gains signaled the return of" ", using a term that the economist John Maynard Keynes coined that term in 1936 to refer to when people start making financial decisions based on emotion, rather than logic.Wall Street's top banks are already warningSo it might be time for investors to start worrying – because while meme stocks' gains are a boost for Reddit day traders, they tend to be bad news for everyone else.

 

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