Big investors react to meme stocks’ comeback

The comeback of meme stocks has caused major investors to react negatively, issuing warnings.

Meme stocks are back on the market and the votes against were not long in coming. large investors spoke negatively and left their warnings about thisin accordance with Dan Vale on the street.

“It’s confusing,” he said. Legendary CNBC hedge fund manager Boaz Weinstein, founder of Saba Capital Management.

“When you see something that’s gone up 100% and you don’t know why, you feel great because it’s good for those who have it. But he laughs at the problem of investing“

In short: “This cannot be justified by anything other than Pure speculation. I don’t want anything to do with this“Added Weinstein.

He Veteran hedge fund investor Doug Kass, TheStreet Pro commentatoralso expressed skepticism. “Fool squared!” wrote above Roaring Kitty’s tweetsupposedly predicting this This meme stock rally will end in ruins, just like the last one.R.

“Except, “The more they come, the harder they fall” Cass wrote in discussion about GameStop-A And AMC Enter Hldg Rg-A.

short sellers bet against a company by borrowing shares and selling them. If the stock price falls, short sellers will buy back the shares at a lower price, return the borrowed shares (for a fee), and keep the difference..

But The 2020-2021 Meme Stock Rally Was a Short Squeeze. This means Investors who were short the shares were forced to buy them back to cover losses due to rising prices. actions.

“And this time “Investors Can’t Borrow GameStop and AMC”, – noted Cass. “This reduction of buyers, not short-term reductionthat he has more severe market consequences“.

He also offered consolation New investors caught in a web of memes. “Imagine spend four years of your life studying efficient market hypotheses only to see GME break 100%… because a guy calling himself Roaring Kitty tweeted a meme,” Cass warned.

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