Trend VS. Fad

When presented with a product to invest in, investors often try to figure out whether the product is a trend or a fad.

Trend refers to a general direction or pattern of change that is happening over a long period of time. Trends are usually gradual and persistent, often continuing for several years or more. For example, the trend of people using smartphones for internet access is a well-established trend that has been happening for over a decade.

Fad, on the other hand, refers to a short-lived craze or phenomenon that is popular for a limited period of time and then fades away quickly. Fads are often driven by fashion, media, or popular culture, and they tend to be very specific to a particular time and place. For example, fidget spinners were a popular fad a few years ago, but they quickly lost their popularity and are no longer widely used.

Example of trends:

  1. Increased use of technology for communication and entertainment
  2. Growing interest in sustainable and eco-friendly products
  3. Increased demand for plant-based and vegetarian diets
  4. Popularity of remote work and flexible schedules
  5. Rising trend of fitness and wellness
  6. Growth of e-commerce and online shopping
  7. Increased use of renewable energy sources
  8. Popularity of subscription-based services (such as Netflix)
  9. Growing trend of urbanization and migration to cities
  10. Increased focus on mental health and self-care.

Example of fads:

  1. Fidget spinners
  2. Beanie babies
  3. Tamagotchis
  4. Pokémons
  5. Hoverboards
  6. Hula hoops
  7. Rubik’s Cubes
  8. Yo-yos
  9. Pogs
  10. Chia Pets
  11. Troll Dolls
  12. Slap bracelets
  13. Tickle Me Elmo
  14. Cabbage Patch Dolls
  15. Moon Shoes
  16. Pet Rocks
  17. mood rings
  18. Razor scooters.

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