Wall Street's retail trading frenzy has distorted markets, global hedge funds industry body AIMA said on Monday, adding it was concerned that lawmakers were encouraging such moves.
Retail investors gathering in social media chatrooms like Reddit have been driving up the price of stocks like GameStop shorted by hedge funds, with the focus shifting to other parts of the market on Monday, such as silver."What is dangerous, amid this trading frenzy, is that retail investors have been chasing prices so far above any sane valuation and that many will end up nursing losses," AIMA CEO Jack Inglis said in a letter to members, who manage US$2 trillion.
U.S. Democratic lawmaker Alexandria Ocasio-Cortez, said last week that people felt"everyday people" were finally able to"get back" at those who had all the marbles on Wall Street and forced once hedge fund into an existential crisis.
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