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Billionaire “Bond King” Jeffrey Gundlach is the latest to blame government stimulus checks for massive spikes in stocks like GameStop that have caused huge losses to businesses on Wall Street.
“In this case, thanks mostly to government policy, there are ways among investors, if you want to call them that, with government money sprayed all over the place, with checks to people, that they can afford to. bring it together into a real capital base, ”Fox Business told Fox on Friday. “In this case, there were 2.1 million people who organized themselves on Reddit and managed to get around $ 20 billion in purchasing power, and they found an opportunity to bring these hedge funds together.”
Mr Gundlach also criticized all parties to the dispute, where major investors organized themselves on the social network and bet against big companies on stocks like GameStop, which the Wall Street houses had bet on would fail thanks to an instrument. fellow called “short”. Soaring stock prices ultimately led trading apps like Robinhood to temporarily limit stock purchases around suddenly hot companies.
“I have no sympathy for these hedge funds,” he said, while berating the Reddit Warriors for their triumphant attitude. “There’s a little bit of pride that seems to happen with this network that makes me less likely to see like David vs. Goliath. Hubris bothers me.
Billionaire hedge fund manager Leon Cooperman made similar comments about the stock surge. Mr Cooperman, who was convicted of insider trading in 2016, told CNBC on Thursday that the $ 2,000 and $ 600 coronavirus aid checks were to blame for GameStop’s stock price spike .
“The reason the market is doing what it is doing is that people are sitting at home, getting their checks from the government, trading essentially without commissions or interest rates,” he said.
However, not all mega-investors felt this way. Billionaire and Shark aquarium Host Mark Cuban said he admires the amateur investors driving the stock market saga.
“There are many hedge funds out there that have made a lot of money over the years targeting heavily sold stocks. I don’t think it’s anything different, “he told CNBC.” It’s just the people making the push who aren’t the ones we expect of them and that’s why I like this.
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