“They are buying bullish call options that expire inside two weeks. There was ($500 billion) of bullish call options bought in a four-week stretch by small retail traders,” Smead said.
A call option is a contract between the buyer and seller of the call to exchange a security – that is, a stock – at an agreed price.
“In ’99, it was $100 billion. In ’07, it was $100 billion. That’s what young, dumb investors are doing and when the market makers see those [call buying] out there, they sell that call to that person and buy the stock,” he added.
The fund manager suggested the willingness of wealthy investors and the baby boomer generation to “ride the index to a fault” and overpay for stalwart American businesses such as Costco and Microsoft was also detrimental.
“Microsoft is a wonderful company, but at 40 times earnings, there is zero percent chance of that producing wealth for someone over the next 10 years that will meet their needs,” Smead said.
Fast-rising gospel music artist and songwriter, Loveth Okpaga releases new single titled “Oluebube Gi“.
This song expresses the glorious works of God towards mankind, how unexplainable His...
Onyinye Ayozie - Living Sacrifice MP3 DOWNLOAD
Onyinye Ayozie - Living Sacrifice: Onyinye Ayozie drop a brand new hit single titled Living Sacrifice
Download Below
https://cldup.com/cnkTc_gXBW.mp3
DOWNLOAD MP3: Onyinye...
Fast-rising gospel music artist and songwriter, Loveth Okpaga releases new single titled “Oluebube Gi“.
This song expresses the glorious works of God towards mankind, how unexplainable His...