Jim Cramer
Scott Mlyn | CNBC
The “big reopening trade” is being led by investment professionals at the expense of retail day traders who became interested in the stock market during this year’s “WallStreetBets revolution”, said CNBC presenter “Mad Money” Jim Cramer , on Friday.
“Money managers have regained control of the market. And they don’t want to pay 100 times sales; they prefer to pay 10 times earnings,” said Cramer in “Squawk on the Street,” pointing out that professionals have been avoiding senior executives lately. high ratings in favor of less flashy names linked to easing Covid’s mitigation restrictions on companies.
Negotiations of the 1990s-type day – which returned earlier this year, exemplified by the GameStop frenzy – have led to an increase in trading volume in recent months. But the volume has now started to decline, as noted this week by CNBC’s Bob Pisani, raising questions about whether retail investors are throwing in the towel.