What does "risk-on" market sentiment mean?

"Risk-on" refers to periods when investors feel confident about economic conditions and are willing to put money into higher-risk investments like growth stocks. During these times, investors prioritize potential rewards over safety, which often benefits the types of companies in this Market Greed collection.

Why do falling interest rates benefit these companies?

When interest rates fall, it becomes cheaper for companies to borrow money for expansion, which is particularly important for growth-focused businesses. Additionally, lower rates make future profits more valuable in today's terms, which tends to increase the stock prices of companies that promise significant earnings in the future but may not be profitable yet.

What is a "high-beta" stock?

A high-beta stock (like Tesla in this collection) is one that tends to move more dramatically than the overall market. For example, if the market goes up 1%, a high-beta stock might go up 2% or more. This magnified movement works in both directions—these stocks typically fall harder during downturns but rise more quickly during upswings.

What are "meme stocks" like GME and AMC?

Meme stocks are companies whose share prices are driven primarily by social media attention and retail investor enthusiasm rather than by traditional financial metrics like earnings or revenue growth. GameStop (GME) and AMC Entertainment became famous examples in 2021 when coordinated buying by retail investors on platforms like Reddit caused their share prices to skyrocket despite challenging business fundamentals.

What is an ETF like ARKK?

An ETF (Exchange-Traded Fund) is an investment fund traded on stock exchanges that holds assets like stocks, bonds, or commodities. ARKK, specifically, is the ARK Innovation ETF managed by Cathie Wood, which focuses on disruptive innovation companies across sectors like artificial intelligence, robotics, energy storage, DNA sequencing, and blockchain technology. Investing in an ETF like ARKK gives you exposure to multiple companies in a single investment.

15 handpicked stocks

Market Greed

Ride the wave of investor optimism with this carefully selected group of high-growth companies. Our professional analysts have identified businesses positioned to deliver amplified returns when market sentiment is bullish and risk appetite is high.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 18