'For longer than we anticipated, meme stocks stayed up to a level which was ridiculous,' said Joe Saluzzi, co-manager of trading at Themis Trading in New Jersey. The $1.6 million Roundhill MEME ETF, which provides exposure to stocks with high short interest and elevated social media activity, has slumped in six of the seven weeks since its launch. Koss Corp, BlackBerry, Avis Budget Group Inc, Workhorse Group Inc, Bed Bath & Beyond Inc dropped between 14 percent and 36 percent so far this month. Other stocks that have drawn interest from retail investors also fell. Last week, Vanda Research, which tracks retail investor flows, said overall social media chatter on meme stocks has dropped substantially from early 2021 'There was a period there where there was all this free stimulus money and low rates and margin availability.that's coming to an end,' Hayes said. 'As rates rise, the present value of future cash flows diminishes and it takes some of the speculation out of the market,' said Thomas Hayes, managing member at Great Hill Capital in New York. stocks are coming off their worst week since the start of the pandemic in March 2020, as an expected rise in the cost of borrowing would mark the end of the easy money policy that had fueled a stock market rally. 'A lot of people have lost a lot of money, and that's even before we get to crypto.' 'We're going to see the flip side of that coin going forward,' said Chanos. He said that it was disturbing to see small investors snapping up the shares of struggling companies such as GameStop and AMC without regard to their fundamentals. ![]() 'The amount of cognitive dissonance that I see in the retail investment community, and I know it's only somewhat representative, it's pretty broad,' Chanos told CNBC on Monday.
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