Frothy trading in bankrupt companies, penny stocks sent red flags that a pullback was due

  • 📰 CNBC
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

With the S&P 500 more than 45% off its low, analysts have been seeing some frothy stock trading and signs the market is overbought and could be ready for a rest

are some of the stocks that were trading below $1 per share in the Russell 2000.

"There's really two types of people who invest in those sorts of things. People who are outright speculative, and those who are specialists who have done the math and understand the risk for the stocks and bonds," said Ed Keon, chief investment strategist at QMA. "You also mostly see those type of investors on the bond side of things, rather than the stock side. There are those that do it properly. It's a specialist game and it's not easy to play.

Keon has become more cautious on the market which he sees overvalued by some metrics. Investors venturing into the riskier areas may have made some good returns on the rebound in airlines and other reopening plays. "They made some money and that encouraged people to do it. it's a good idea until it isn't," Keon said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

cnbc really good at cheerleading momentum on either direction , after the fact ! Completely clueless !

The market is awaiting capitulation from the RobinHoodlums.

Вы верите в это?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cramer on rampant market speculation: 'I've never seen so many games played with stocks'Jim Cramer cautioned investors against trading volatile stocks popular on social media and said they should look at buying fractional shares of bigger companies instead. Yes you have. It's been going on for years while you helped Satan's bookkeepers steal money via the retirement fund Ponzi scheme. You just now see the Ponzi ending and are playing both sides to hedge. ***BREAKING!! : CRAMER JUST AS CLUELESS AS THE REST OF US***
Source: CNBC - 🏆 12. / 72 Read more »

Robinhood traders are piling into Hertz, JCPenney, and other bankruptcy stocks despite the massive risks | Markets InsiderRobinhood traders are betting on bankrupt companies including Hertz and JCPenney, even though shareholders tend to be losers in the bankruptcy p... The speculators are gonna get burnt... Yah right Virus Survivors Could Suffer Severe Health Effects for Years ['
Source: BusinessInsider - 🏆 729. / 51 Read more »