Billionaire “Bond King” Jeffrey Gundlach is the last to blame government stimulus checks for huge stock rises like GameStop, which have caused huge losses to Wall Street companies.
“In this case, thanks mainly to government policy, there are resources among investors, if you want to call them that, with government money being spread all over the place, with checks for people, that they have the resources to put it it into a true base capital, ”Fox Business said on Friday. “In that case, 2.1 million people organized on Reddit and got about $ 20 billion in purchasing power, and found an opportunity to boost these hedge funds.”
Gundlach was equally critical on all sides of the dispute, where the main investors organized themselves on the social network and bet against big companies on shares like GameStop, which the Wall Street houses bet they would fail through a stock instrument called “sold” “. The sky-high stock prices eventually led trading apps like Robinhood to temporarily limit stock purchases at suddenly hot companies.
“I have no sympathy for these hedge funds,” he said, while punishing the Reddit warriors for their triumphant attitude. “There is a little bit of arrogance that seems to be happening with this network that makes me less likely to see it is like David versus Goliath. Arrogance bothers me. “
The billionaire hedge fund manager, Leon Cooperman, made similar comments about the stock increase. Cooperman, who was convicted of insider trading in 2016, told CNBC on Thursday that the $ 2,000 and $ 600 checks for coronavirus aid were to blame for the rising GameStop stock price.
“The reason the market is doing what it is doing is that people are sitting at home, receiving their checks from the government, basically trading without commissions and without interest rates,” he said.
However, not every mega-investor felt this way. Billionaire and Shark Tank Presenter Mark Cuban said he admired the hobby investors who were driving the stock saga.
“There are a lot of hedge funds that have made a lot of money over the years by targeting heavily shorted stocks. I don’t think it’s any different, “he told CNBC.” It’s just that the people who are pushing are not who we expect them to be and that’s why I like it. “