MLA 8
Lee, Christian. "ANALYZING THE IMPACT OF ONLINE INTERNET INFLUENCERS AND SOCIAL SENTIMENT IN THE 2020-2021 US STOCK MARKET." Int. j. of Social Science and Economic Research, vol. 8, no. 7, July 2023, pp. 1907-1912, doi.org/10.46609/IJSSER.2023.v08i07.019. Accessed July 2023.
APA 6
Lee, C. (2023, July). ANALYZING THE IMPACT OF ONLINE INTERNET INFLUENCERS AND SOCIAL SENTIMENT IN THE 2020-2021 US STOCK MARKET. Int. j. of Social Science and Economic Research, 8(7), 1907-1912. Retrieved from https://doi.org/10.46609/IJSSER.2023.v08i07.019
Chicago
Lee, Christian. "ANALYZING THE IMPACT OF ONLINE INTERNET INFLUENCERS AND SOCIAL SENTIMENT IN THE 2020-2021 US STOCK MARKET." Int. j. of Social Science and Economic Research 8, no. 7 (July 2023), 1907-1912. Accessed July, 2023. https://doi.org/10.46609/IJSSER.2023.v08i07.019.
|
References
[1]. Vanatta, N., & Ruiz, A. (2021). Lessons for the DoD when Planning for the Future of S&T. The Cyber Defense Review, 6(4), 133-151.
[2]. Bazzana, D., Colturato, M., & Savona, R. (2021). Learning about Unprecedented Events: Agent-Based Modelling and the Stock Market Impact of COVID-19, 36-42.
[3]. https://www.statista.com/chart/25004/stock-performance-of-companies-targeted-by-m eme-investors/
[4]. https://markets.businessinsider.com/news/stocks/stock-market-analysis-sp500-cathie- wood-ark-tech-selloff-rotation-2022-1
|
ABSTRACT:
This paper explores the unprecedented market inflation experienced in the United States
following the Covid-induced recession in 2020. The surge in market values, with the NASDAQ
and S&P increasing by 136% and 103% respectively from March 2020 to December 2021,
created opportunities for previously unknown penny stocks to rise dramatically in value. This
surge also led to the emergence of "gurus" and personalities in the social media market,
attracting new and inexperienced investors. While these gurus appeared knowledgeable and
successful due to their timely entry into the market and the overall bullish sentiment, their
success was largely fueled by the market's euphoria rather than accurate predictions of
undervalued stocks. Companies like Open door, Lemonade, Tilray, Peloton, and Tesla
experienced significant value declines after the market sentiment shifted to fear, panic, and doubt
in the summer of 2021, accompanied by increasing inflation, tightening interest rates, and
geopolitical turmoil. The downfall of these influencers revealed the fallacy in their valuation
models and predictions, as investors realized that their reasons for stock increases were not based
on actual market drivers. However, it is important to note that these influencers were driven by
naivete rather than ill-intent or malevolence. Their impact on the investing community was
significant, fueling retail participation and bringing about unprecedented moments in the market.
The subsequent bear market in 2022 served as a valuable lesson for many investors, emphasizing
the importance of self-belief, due diligence, and the influence of fear, uncertainty, and doubt
(FUD) on rational thinking and valuations.
Retail investors became more aware of their role in the market and the need to rely on personal
decision-making rather than following internet personalities. The paper concludes by
highlighting the lasting impact of these gurus on the retail investing mindset and the importance
of experience and scrutiny in navigating the world of trading. |
International Journal of Social Science & Economic Research
