Fad stocks vs. trend stocks: Explained

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Julie Hyman,Stocks,Stock Market

Are you considering venturing into the stock market? You may want to be cautious about fad and trend stock investments. Fad stocks are often characterized by...

Are you considering venturing into the stock market? You may want to be cautious about fad and trend stock investments.

So this is, you know, if you think about Warren Buffett who has said frequently and famously invest in what, you know, Roblox is something that I am quite familiar with in my own household. But if you go to your grocery store, you definitely see a lot of different varieties in your freezer, not just a Beyond meat.On the other hand, there are some other things that maybe people thought were fads that ended up having staying power.

And, you know, there are examples of each, but again, it is sort of a time game brad where you just have to kind of see if it ends up staying around.So let's talk about investing fads versus consumer fads and where the case studies have kind of netted out for each there.In the case of something like a Peloton, obviously, the stock followed the enthusiasm for the product itself.The ones I've been talking about are more on the consumer fad side.

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