KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
In 2025, U.S. investors aren't just buying earnings — they’re buying dreams.
From AI to autonomous driving to next-gen healthcare, stocks with compelling narratives — but little to no profits — are exploding. The rally is fueled by retail enthusiasm, social media buzz, and a fear of missing out on “the next Nvidia.”
But as history shows, markets that run on momentum and dreams can turn into nightmares when sentiment shifts.
Top Performers, Thin Profits
Among the top 10 gainers in the Russell 3000 index this year, most aren’t profitable.
Aeva Technologies (AEVA) is up 500%+, despite reporting four straight quarters of losses.
OptimizeRx (OPRX) tripled in value this year — but has only been profitable in one of the past four quarters.
Fact: 45 of the top 50 stocks by YTD gains in the Russell 3000 posted at least one quarterly loss in the past year (FactSet).
“A good story and a bit of price momentum have gone a long way,”— Matt Stucky, Northwestern Mutual Wealth Management
Why Fundamentals Don’t Matter… Until They Do
“Story stocks” are fueled by investor imagination, not cash flows. It's reminiscent of 2021 — but not quite a meme-stock rerun.
In 2021, investors chased nostalgia plays like AMC and GameStop, often to trigger short squeezes. Now, the focus is on future-facing sectors: AI, quantum computing, nuclear, and space tech.
“Fundamentals don’t matter in speculative markets,”— Dennis Dick, Stock Trader Network
Yet when the earnings don’t show up — or show up late — investors risk major drawdowns.
he Risks Are Building
While some companies like Palantir, Robinhood, and Carvana have finally delivered on growth, many others could falter. Investors are pricing in perfection — and that’s dangerous.
IDX Advisors’ CIO Ben McMillan warns that:
Economic slowing could break the bullish spell.
Rising bond yields and persistent deficits could reignite volatility.
SPACs and Bitcoin-treasury clones are re-emerging — a potential red flag.
“This train could keep running into 2026... but the bill will come due,”— Ben McMillan, IDX Advisors
Momentum Works — Until It Doesn’t
The iShares USA Momentum ETF (MTUM) is up 15% YTD, beating the S&P 500’s 7% and Russell 3000’s 6-7%. But momentum is a double-edged sword — when sentiment turns, it turns fast.
Investors should:
✅ Differentiate hype from real innovation
✅ Set exit strategies on speculative plays
✅ Keep exposure diversified — not all stories have happy endings
Final Take
Momentum markets reward dreams, not discipline. But when reality hits, profits matter again. If you're chasing “story stocks,” understand the risks, and be ready for volatility. Some winners will thrive, others will vanish.
As one strategist said best:
“It’s really hard to put a price on a dream.”
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