Retail traders who are speculating on cheap companies risk getting wiped out by another stock-market crash, says Albert Edwards, a global strategist at Societe Generale.
He says investors wrongly believe the Federal Reserve is all-powerful, and doubts that its intervention will avert another downturn of as much as 30%.
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Albert Edwards is not a fan of the retail mania sweeping through the...
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Investors should abandon the often-said "sell in May and go away" market axiom, as a summer market rally happens more often than not, Bank of America said in a note published on Monday.
Instead, investors should sell in July/August instead of May to avoid missing a strong summer market rally.
The bank thinks summer seasonality data and contrarian bullish sentiment indicators suggest a summer rally or catch-up trade is in the cards for the stock market.
Veteran investor Wolf Richter is shorting stocks because he views them are more overpriced now than they were during the dot-com bubble.
Richter said: "You get to have fun at my expense and hail me as the obliterating moron that infamously shorted the greatest stock market rally of all times."
The investor highlighted the challenges facing the likes of Delta and Carnival, and the trend of day traders piling into bankrupt firms like Hertz.
Richter said: "Even during the crazy dotcom...