Share:
Bleakley Advisory Group chief investment officer Peter Boockvar calls the Reddit-fueled rebellion rally a “parabolic bubble” in the CNBC interview.
In a research note, Boockvar warns that mania trades into
GameStop Corp. (NYSE: GME) and
American Airlines Group Inc (NASDAQ: AAL) will ultimately go bust.
“Let’s break down the investment strategy: Find the most shorted stocks, buy calls, write about it, buy the stocks and jam it higher,” said Boockvar.
The prices of these securities far exceed the underlying value of companies.
Boockvar said that markets’ history shows that bubbles start the same way and then pop right “back to where the stock started from.”
U S stocks advance as day-trader frenzy eases bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Provided by Dow Jones
By Paul Page Sign up: With one click, get this newsletter delivered to your inbox. The global shipping industry is looking for calmer sailing under a Biden administration. Shipowners across a range of sectors say their operations were roiled by the tariff-filled trade showdowns and sanctions by the White House over the past four years. The WSJ Logistics Report s Costas Paris writes in a Shipping Matters commentary that the persistent volatility unsettled many operators, even those that profited from the turbulence, like tanker operators that raked in high shipping rates early last year. Industry executives don t expect a fast resolution of trade differences between the U.S. and China under President Biden. But they hope the administration will work quietly to normalize trans-Pacific relations and that trans-Atlantic trade in products from consumer goods to industrial minerals moves at a steadier pace. Uncertainty may have kept
Read more about Covid impact: Airlines close books on rotten 2020 and so far, 2021 is grim on Business Standard. It was a disaster for airlines, worse than 9/11 or the global financial crisis - some very small carriers didn t survive it - and the new year is off to a grim start
Stocks at heart of hedge fund squeeze had fallen on Thursday Robinhood, other brokers to ease restrictions on Friday
By Sagarika Jaisinghani and Medha Singh
Shares in GameStop, AMC Entertainment and BlackBerry plunged more than 40% on Thursday after several online platforms imposed buying halts, but rebounded in late trading as Robinhood and Interactive Brokers said they planned to ease the restrictions on Friday.
The showdown between individual investors and professional short-sellers has roiled global equity markets as funds were forced to sell some of their best-performing stocks, including Apple Inc, to cover billions of dollars of losses.
Wall Street futures and European stock markets fell 1% on Friday, while Asian equities headed for their steepest weekly loss in months as the GameStop effect added to growing doubts about the future of a decade-long rally.