Billionaire ‘Bond King’ Jeffrey Gundlach is the latest to blame the government’s stimulus checks for the huge rise in stocks like GameStop that caused Wall Street businesses huge losses.
‘In this case, thanks mainly to government policy, there is an opportunity for investors to name it, with government money being distributed everywhere, with checks to people, that they have the chance to put together into real capital. basis, ”Fox Business said Friday. “In this case, there were 2.1 million people who somehow organized on Reddit and managed to get about $ 20 billion in purchasing power, and they found an opportunity to raise these hedge funds.”
Mr Gundlach was equally critical of all sides in the dispute, where main street investors organized on the social network and organized against large corporations on stocks such as GameStop, which bet Wall Street homes would fail by a stock instrument called ‘short’. The floating stock prices eventually led to trading apps like Robinhood temporarily limiting the buying of shares around the suddenly hot companies.
“I have no sympathy at all with these hedge funds,” he said, while also chastising Reddit warriors for their triumphant stance. ‘There’s a bit of hubris that’s apparently going on with this network that makes me less likely to see like David vs Goliath. The hubris bothers me. ”
Billionaire hedge fund manager Leon Cooperman made similar remarks about the stock boom. Mr Cooperman, who was convicted of insider trading in 2016, told CNBC on Thursday that the $ 2,000 and $ 600 coronavirus checks were to blame for the rising share price of GameStop.
“The reason the market does what it does is because people sit at home and get their checks from the government, and basically trade for no commissions and no interest rates,” he said.
However, not every mega-investor felt that way. Billionaire and Shark Tank host Mark Cuban said he admires the hobby investors who drive the stock saga.
‘There are a lot of hedge funds that have made a lot of money over the years with stocks with a large short circuit. “I don’t think it’s anything else,” he told CNBC. It’s just the people who make the pressure, and that’s why I like it. “