SEC Chair Clayton says he's worried about short-term trading in stocks like Tesla

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“Short-term trading is much more risky than long-term investing, and so I do worry,” SEC Chair Jay Clayton says about retail investors.

carmaker is now worth about $300 billion, the result of a 512% increase in its stock price over the last 12 months.

Clayton added that the SEC has issued guidance to brokers and investment advisors on how to give individuals proper warning about the risks they face when allocating capital in select equities.Though some analysts have argued that Tesla's newfound valuation may reflect a long-term belief that the company will lead a broader, nationwide shift to electric cars, others have decried the spike as disconnected from reality.

Morgan Stanley's widely followed autos analyst, Adam Jonas, noted last week that "the power of hope" is taking an ever-more-important role in Tesla's climb. Tesla's stock rose 4.2% in premarket trading Thursday morning as investors applauded the better-than-expected financial results it released Wednesday evening.for exclusive insights and analysis, and live business day programming from around the world.

 

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Ha Ha Ha, they do not want short-term traders taking profits. I sleep better and make better money versus long-term trading.

Captain Obvious moment. Yes, over the long term, equities on the whole go up. In the short term, they are more volatile. But higher risk brings higher potential reward. Short term traders who bought at March lows and have taken money off the table in June/July have been smart.

It will end in crying as it should

How about the SEC worry about what $NKLA's telling shareholders on the CEO's twitter?

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