Latest news with #EricDiton
Economic Times
4 days ago
- Business
- Economic Times
Return of meme stock mania has traders on alert for market froth
Meme stock enthusiasm has returned, creating uncertainty for professional investors. Stocks like Opendoor Technologies and Kohl's experienced gains. The S&P 500 and Nasdaq 100 indices reached record highs. Investors are borrowing heavily to buy stocks. Some analysts suggest caution due to high valuations. Comparisons are being drawn to the GameStop and AMC surge of 2021. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The reemergence of meme stock mania last week has professional investors facing a quandary: ride the excitement of retail traders or take it as the latest warning sign that the frothy markets are due for a speculative stocks caught up in the frenzy this week, like Opendoor Technologies and Kohl's, gave up some of their gains as the week went on, but most are still trading at their highest levels in months. The broader S&P 500 Index and Nasdaq 100 Index are doing even better, sitting at all-time highs after charging back from the early April selloff set off by President Donald Trump's tariff are indicators that investors are abandoning restraint and betting on further gains. The amount that investors are borrowing to buy stocks on the New York Stock Exchange, known as margin debt , has exceeded the tech-bubble highs to reach a new record, according to data from the Financial Industry Regulatory signs of fatigue are creeping in. The latest meme stock rally seemed to lose steam after just a few days, and Bitcoin , one of the most visible symbols of the speculative fever, has recently fallen back from its record highs. Some Wall Street trading desks have been urging clients to scoop up discounted protection against possible losses. The current run has stretched valuations, with the S&P 500 trading at nearly 23 times forward earnings, well above the ten-year average of around 18, signalling that stocks have gotten significantly more expensive."I'm seeing it and just starting to just tuck my horns in a little bit," said Eric Diton, president and managing director of the Wealth Alliance. "I'm longer-term bullish, but I'm just short-term cautious. I really think we're overdue for some kind of a pullback again because of the excessive speculation."For help in navigating the volatility, some market watchers are looking for comparisons with the most famous meme stock moment back in January 2021, when GameStop and AMC Entertainment captured the world's buying was fuelled by retail traders who were flush with stimulus checks and stuck at home, swapping tips on social media. It came after a banner year in the markets, in 2020, but ended up being only the beginning of an even bigger rally in 2021, when the S&P 500 rose another 27%. There was, though, eventually a reckoning in 2022 when the index plunged 19%, notching the worst yearly performance since the great financial crisis.
Time of India
4 days ago
- Business
- Time of India
Return of meme stock mania has traders on alert for market froth
The reemergence of meme stock mania last week has professional investors facing a quandary: ride the excitement of retail traders or take it as the latest warning sign that the frothy markets are due for a pullback. The speculative stocks caught up in the frenzy this week, like Opendoor Technologies and Kohl's, gave up some of their gains as the week went on, but most are still trading at their highest levels in months. The broader S&P 500 Index and Nasdaq 100 Index are doing even better, sitting at all-time highs after charging back from the early April selloff set off by President Donald Trump's tariff announcements. Explore courses from Top Institutes in Please select course: Select a Course Category PGDM Design Thinking Operations Management Technology Cybersecurity healthcare Project Management Data Analytics Management MCA Digital Marketing Healthcare Data Science Data Science MBA Finance Artificial Intelligence CXO Degree others Public Policy Leadership Others Product Management Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cerme: Air Conditioner at an Affordable Price – Quick Installation Air Conditioner | Search Ads Learn More Undo There are indicators that investors are abandoning restraint and betting on further gains. The amount that investors are borrowing to buy stocks on the New York Stock Exchange, known as margin debt , has exceeded the tech-bubble highs to reach a new record, according to data from the Financial Industry Regulatory Authority. But signs of fatigue are creeping in. The latest meme stock rally seemed to lose steam after just a few days, and Bitcoin , one of the most visible symbols of the speculative fever, has recently fallen back from its record highs. Some Wall Street trading desks have been urging clients to scoop up discounted protection against possible losses. The current run has stretched valuations, with the S&P 500 trading at nearly 23 times forward earnings, well above the ten-year average of around 18, signalling that stocks have gotten significantly more expensive. "I'm seeing it and just starting to just tuck my horns in a little bit," said Eric Diton, president and managing director of the Wealth Alliance. "I'm longer-term bullish, but I'm just short-term cautious. I really think we're overdue for some kind of a pullback again because of the excessive speculation." Live Events For help in navigating the volatility, some market watchers are looking for comparisons with the most famous meme stock moment back in January 2021, when GameStop and AMC Entertainment captured the world's attention. That buying was fuelled by retail traders who were flush with stimulus checks and stuck at home, swapping tips on social media. It came after a banner year in the markets, in 2020, but ended up being only the beginning of an even bigger rally in 2021, when the S&P 500 rose another 27%. There was, though, eventually a reckoning in 2022 when the index plunged 19%, notching the worst yearly performance since the great financial crisis.
Yahoo
15-07-2025
- Business
- Yahoo
Nasdaq ends at another record high on Nvidia's China chip cheer
STORY: U.S. stocks ended mixed on Tuesday, with the Dow dropping about one percent, the S&P 500 shedding four-tenths of a percent, but the Nasdaq ticked up nearly two-tenths of a percent. It was the fourth session out of five that the technology-heavy Nasdaq posted a record close. AI-chip leader Nvidia was the primary factor. Its shares jumped 4% after the company unveiled plans to resume sales of its H20 AI chip to China, explained Eric Diton, president and managing director of The Wealth Alliance. "As we know, Nvidia is the highest-valued stock in the market in the world, north of $4 trillion. So, when Nvidia moves sharply higher, which it is today, that in and of itself can move the Nasdaq. But Oracle, Apple, Microsoft, which are now over 500, those tech stocks are back in control for sure, and that is what's moving the market today." The news buoyed other chipmakers, with Advanced Micro Devices and Super Micro Computer gaining nearly six-and-a-half and seven percent, respectively. Meanwhile, Wall Street banks kicked off second-quarter earnings season, with their stocks whipsawing in volatile trade. Shares of Wells Fargo slid five-and-a-half percent after the bank cut its net interest income forecast, though it beat quarterly profit estimates. JPMorgan Chase raised its 2025 net interest income outlook, but shares still ended lower. BlackRock said its assets under management hit a new high in the second quarter as global markets rallied, but its shares tumbled nearly six percent after it said a large Asian institutional client pulled money from an index strategy. Bucking the trend, Citigroup climbed more than three-and-a-half percent to its highest finish since the global financial crisis, after its traders delivered a windfall that boosted second-quarter profit. Data on Tuesday showed U.S. consumer prices posted their biggest jump in five months in June, hinting that tariffs may be starting to heat up inflation. Still, underlying inflation stayed moderate. Markets are betting the Federal Reserve will hold interest rates steady this month, with a more than 50% chance the central bank will resume rate cuts in September. Sign in to access your portfolio
Reuters
15-07-2025
- Business
- Reuters
Market Talk: Trump's pressure on Powell risks dollar's dominance
"Trump's got to be careful," warned Eric Diton, president and managing director of The Wealth Alliance, "because if he leans too hard on [U.S. Federal Reserve Chair] Jay Powell, or replaces him and brings in someone who is a Trump 'yes-man,' we are endangering the dollar as the international reserve currency." Lisa Bernhard has more.
Reuters
10-06-2025
- Business
- Reuters
Small-caps 'compelling' as stagflation risks rise, says wealth advisor
The stocks of smaller companies are attractive for a number of reasons including their lower prices, says Eric Diton, president and managing director of The Wealth Alliance.
