Meme Stock Mania Returns, Bitcoin At ATH. But Have You Checked Used-Rolex Prices?

The meme stock craze of 2021 is making a comeback, with shares of Kohl's surging 90% and heavily shorted names like GoPro jumping 50% or more. The surge began with a gamma squeeze in Opendoor Technologies, triggering a record surge in call option activity. Meanwhile, Bitcoin is hovering near record highs at $120,000. During the Covid market mania, luxury watch prices exploded as crypto enthusiasts and Robinhood traders bought Rolexes. According to the Bloomberg Subdial Watch Index, used Rolex prices have recently hit their highest level in two years, following a multi-year slump due to elevated interest rates. However, UBS analysts predict that a meaningful recovery in the global luxury market might not occur until 2027. The sustainability of the latest rise in luxury used watch prices remains uncertain. Looking ahead, US interest rate swaps are pricing in the beginning of a cutting cycle in October. The comeback of meme stocks and the rise in luxury watch prices may be related to the current market conditions. The connection between the two phenomena is reminiscent of the Covid market mania. As the market continues to evolve, it remains to be seen how these trends will play out.