Latest news with #MaxGokhman
Yahoo
23-07-2025
- Business
- Yahoo
Meme Stock Euphoria Spreads as Retail Traders Pick New Wagers
(Bloomberg) -- Meme stock mania is spreading to a growing number of speculative stocks, underscoring retail trader appetite for more risky bets even with the market at all-time highs. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Milan Corruption Probe Casts Shadow Over Property Boom Chatter across social media platforms first fixed on Opendoor Technologies Inc. but has since expanded to other heavily discounted names like Kohl's Corp., GoPro Inc. and Krispy Kreme Inc., sending them all flying to eye-popping rallies. For amateur traders making these dicey bets, it's less about company fundamentals and more about the online personalities endorsing them, according to Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'A lot of times with meme stocks in general, what the business does is much less important than who's backing the stock,' he said. 'Finfluencers are commanding these followings. You may have this one person posting on TikTok about a stock they like and then there's 100,000 or more investors who are putting money behind it.' According to Citadel Securities, retail traders were net buyers of cash equities for the past 19 straight trading sessions, the longest streak since the frenzied days of the 2021 meme stock craze. The 10-day average of retail participation in non-profitable technology companies reached 23% — the highest level since a Goldman Sachs trading desk began tracking it — and rose to 25% this week. Many of the stocks have come into focus because they have high levels of short interest, indicating that more sophisticated investors have been betting against them. Retail traders are hoping to take advantage of a short squeeze in which short sellers are forced to get out of their trades by buying back the shares, sending the stock higher. 'It's almost like a broad rotation where the winners are getting sold for the losers and those losers are getting squeezed,' said Jack Janasiewicz, portfolio manager at Natixis Investment Managers Solutions. Opendoor Until very recently, shares of digital real estate firm Opendoor Technologies were trading under $1, putting it at risk of being delisted. A series of posts praising the stock from Eric Jackson, founder of Toronto-based hedge fund EMJ Capital, caused it to jump 312% in just six days through Monday. Shares of Opendoor are now extending their retreat for a second day following the massive six-day run up. More than 360 million shares exchanged hands on Wednesday morning, roughly 240% of the average over the last three months. Kohl's Of the latest meme stock breakouts, shares of the beleaguered retailer Kohl's have the highest short interest. Some 48% of the free float of the $1.3 billion stock have been borrowed for the purpose of shorting the company, according to data compiled by S3 Partners. That has led to some talk on message boards about the stock rising as a result of a short squeeze. Kohl's shares tumbled as much as 18% on Wednesday after surging 38% higher at market close on Tuesday. The company was in the spotlight a few months ago following the firing of its recently appointed chief executive officer, Ashley Buchanan, due to allegations that he directed business to a romantic partner. GoPro Wearable camera maker GoPro has soared more than 75% this week, including a 73% jump at Wednesday's open — more than any previous day on record. The company, which has a market capitalization of about $247 million, has drawn retail interest on social media platforms in part because of its elevated short interest of nearly 10% of the float, according to data compiled by Bloomberg. This year, the company has been embroiled in a patent-infringement dispute with rival Insta360. Krispy Kreme Doughnut maker Krispy Kreme shot up over 35% on Wednesday morning before falling back, bringing its weekly gain to 44%, more than in any previous week. The volume of call options on the stock reached a record level Tuesday, with more than 1 million contracts trading, as investors loaded up on bullish wagers to chase the rally. Before the recent retail-driven surge, the shares had been under pressure after the company halted quarterly cash dividends and ended a partnership with McDonald's Corp. on cost issues. About 30% of its outstanding shares are sold short, according to data compiled by Bloomberg. As the number of stocks attracting retail traders is growing, Joe Gilbert, portfolio manager at Integrity Asset Management, cautioned of warning signs ahead. 'Most of the excitement from retail traders has been because of the success of buying the dip after Liberation Day,' he said. 'Their confidence is unwavering now and that is the perfect setup for a correction.' --With assistance from Natalia Kniazhevich. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Burning Man Is Burning Through Cash A Rebel Army Is Building a Rare-Earth Empire on China's Border What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All ©2025 Bloomberg L.P.
Time of India
14-06-2025
- Business
- Time of India
Wall Street's momentum machine faces a Middle East stress test
Geopolitical tensions are rising. Israeli airstrikes on Iranian nuclear sites sparked market reactions. Oil prices initially surged, but later stabilized. Investors are closely monitoring the Middle East and Washington. They await signals that could influence market sentiment next week. The focus is on the durability of the market rally. Traders are balancing risk and potential gains. The situation remains fluid. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads It's the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It's a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus this week when readings on inflation and consumer sentiment came in better than airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally important in salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the attention turns to the weekend. With fresh escalation underway, markets are bracing for signals from the Middle East and Washington that could shape next week's mood — and test how durable the rally reflex really is.'This has been a year where fading bad news paid off, and the FOMO theme has been growing louder,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'When that momentum becomes blind euphoria it can cause bulls to hit a brick wall at full speed, but we aren't there yet.'Of course, anxiety abounds, as it has throughout a turbulent year. Israel warned its attacks may go on for weeks, while Iran has vowed to respond buying is also slowing, money is edging into cash and gold, and bonds offered little comfort: the 10-year yield ended higher on Friday, a reminder that traditional havens are no sure thing as fiscal clouds the kicker: President Donald Trump has promised sweeping tariffs within two weeks, a potential supply-side disruption that could collide with an oil market already on edge.'If the stock market can muscle through this, that will only increase the FOMO. It may well engender the perception that the rally is 'bullet proof,'' said Michael Purves, founder and CEO of Tallbacken Capital Advisors. 'This increases the ultimate downside risk.'By the Friday close, commodities ended up bearing the brunt of the pressure from the ongoing conflict, with oil climbing about 8% and gold testing a record high. The S&P 500 ended the week just 0.4% lower and 10-year Treasuries traded down about 10 basis points. The Cboe Volatility Index, or VIX, ended the week just above 20 as measures for bonds and currencies closed factor in the relative resilience may come from the sheer volume of shocks investors have already absorbed in 2025 — from inflation and bond convulsions to tariffs and geopolitics. While each has caused brief selloffs, the snapbacks have been fast enough to sharpen, not dull, the momentum impulse among investors.A Societe Generale SA index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals. Trends derived across fixed income, equities and currencies were all flashing green when the conflict broke out. Price action like that is hard for Wall Street's risk traders to ignore, according to SocGen's Manish Kabra.'We look at the VIX and MOVE indexes, they're showing an element of complacency in there that's a bit surprising because of all these events that occurred,' said Phillip Colmar, global strategist at MRB Partners. 'If we hadn't gone through the April fiasco, I think that the markets would be nervous right now and more negative.'Indeed, buoyant positioning is extreme enough to give some Wall Street naysayers pause. Fear of missing out has driven extreme readings in the exchange-trade funds universe, among other places, with high-beta ETFs drawing significantly more inflows than low-beta counterparts, according to Bloomberg Intelligence's Athanasios Psarofagis.'Just as there was overreaction to the downside from the initial tariff news, the rebound appears a bit too hopeful in our view,' said Nathan Thooft at Manulife Investment Management in Boston, which oversees $160 billion. 'There are still a number of uncertainties that could lead to higher market volatility in the coming months. With that sa
Economic Times
14-06-2025
- Business
- Economic Times
Wall Street's momentum machine faces a Middle East stress test
It's the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil spiked. ADVERTISEMENT Yet in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en masse. Yes — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early gains. That relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It's a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus this week when readings on inflation and consumer sentiment came in better than estimated. The airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally important in salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the dip. Now, attention turns to the weekend. With fresh escalation underway, markets are bracing for signals from the Middle East and Washington that could shape next week's mood — and test how durable the rally reflex really is. ADVERTISEMENT 'This has been a year where fading bad news paid off, and the FOMO theme has been growing louder,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'When that momentum becomes blind euphoria it can cause bulls to hit a brick wall at full speed, but we aren't there yet.' ADVERTISEMENT Of course, anxiety abounds, as it has throughout a turbulent year. Israel warned its attacks may go on for weeks, while Iran has vowed to respond buying is also slowing, money is edging into cash and gold, and bonds offered little comfort: the 10-year yield ended higher on Friday, a reminder that traditional havens are no sure thing as fiscal clouds gather. ADVERTISEMENT And the kicker: President Donald Trump has promised sweeping tariffs within two weeks, a potential supply-side disruption that could collide with an oil market already on edge.'If the stock market can muscle through this, that will only increase the FOMO. It may well engender the perception that the rally is 'bullet proof,'' said Michael Purves, founder and CEO of Tallbacken Capital Advisors. 'This increases the ultimate downside risk.'By the Friday close, commodities ended up bearing the brunt of the pressure from the ongoing conflict, with oil climbing about 8% and gold testing a record high. The S&P 500 ended the week just 0.4% lower and 10-year Treasuries traded down about 10 basis points. The Cboe Volatility Index, or VIX, ended the week just above 20 as measures for bonds and currencies closed lower. ADVERTISEMENT One factor in the relative resilience may come from the sheer volume of shocks investors have already absorbed in 2025 — from inflation and bond convulsions to tariffs and geopolitics. While each has caused brief selloffs, the snapbacks have been fast enough to sharpen, not dull, the momentum impulse among investors.A Societe Generale SA index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals. Trends derived across fixed income, equities and currencies were all flashing green when the conflict broke out. Price action like that is hard for Wall Street's risk traders to ignore, according to SocGen's Manish Kabra.'We look at the VIX and MOVE indexes, they're showing an element of complacency in there that's a bit surprising because of all these events that occurred,' said Phillip Colmar, global strategist at MRB Partners. 'If we hadn't gone through the April fiasco, I think that the markets would be nervous right now and more negative.'Indeed, buoyant positioning is extreme enough to give some Wall Street naysayers pause. Fear of missing out has driven extreme readings in the exchange-trade funds universe, among other places, with high-beta ETFs drawing significantly more inflows than low-beta counterparts, according to Bloomberg Intelligence's Athanasios Psarofagis. 'Just as there was overreaction to the downside from the initial tariff news, the rebound appears a bit too hopeful in our view,' said Nathan Thooft at Manulife Investment Management in Boston, which oversees $160 billion. 'There are still a number of uncertainties that could lead to higher market volatility in the coming months. With that sa
Yahoo
14-06-2025
- Business
- Yahoo
Wall Street's Momentum Machine Faces a Middle East Stress Test
(Bloomberg) — It's the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil spiked. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban Do World's Fairs Still Matter? As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Yet in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en masse. Yes — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early gains. That relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It's a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus this week when readings on inflation and consumer sentiment came in better than estimated. The airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally important in salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the dip. Now, attention turns to the weekend. With fresh escalation underway, markets are bracing for signals from the Middle East and Washington that could shape next week's mood — and test how durable the rally reflex really is. 'This has been a year where fading bad news paid off, and the FOMO theme has been growing louder,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'When that momentum becomes blind euphoria it can cause bulls to hit a brick wall at full speed, but we aren't there yet.' Of course, anxiety abounds, as it has throughout a turbulent year. Israel warned its attacks may go on for weeks, while Iran has vowed to respond forcefully. Retail buying is also slowing, money is edging into cash and gold, and bonds offered little comfort: the 10-year yield ended higher on Friday, a reminder that traditional havens are no sure thing as fiscal clouds gather. And the kicker: President Donald Trump has promised sweeping tariffs within two weeks, a potential supply-side disruption that could collide with an oil market already on edge. 'If the stock market can muscle through this, that will only increase the FOMO. It may well engender the perception that the rally is 'bullet proof,'' said Michael Purves, founder and CEO of Tallbacken Capital Advisors. 'This increases the ultimate downside risk.' By the Friday close, commodities ended up bearing the brunt of the pressure from the ongoing conflict, with oil climbing about 8% and gold testing a record high. The S&P 500 ended the week just 0.4% lower and 10-year Treasuries traded down about 10 basis points. The Cboe Volatility Index, or VIX, ended the week just above 20 as measures for bonds and currencies closed lower. One factor in the relative resilience may come from the sheer volume of shocks investors have already absorbed in 2025 — from inflation and bond convulsions to tariffs and geopolitics. While each has caused brief selloffs, the snapbacks have been fast enough to sharpen, not dull, the momentum impulse among investors. A Societe Generale SA index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals. Trends derived across fixed income, equities and currencies were all flashing green when the conflict broke out. Price action like that is hard for Wall Street's risk traders to ignore, according to SocGen's Manish Kabra. 'We look at the VIX and MOVE indexes, they're showing an element of complacency in there that's a bit surprising because of all these events that occurred,' said Phillip Colmar, global strategist at MRB Partners. 'If we hadn't gone through the April fiasco, I think that the markets would be nervous right now and more negative.' Indeed, buoyant positioning is extreme enough to give some Wall Street naysayers pause. Fear of missing out has driven extreme readings in the exchange-trade funds universe, among other places, with high-beta ETFs drawing significantly more inflows than low-beta counterparts, according to Bloomberg Intelligence's Athanasios Psarofagis. 'Just as there was overreaction to the downside from the initial tariff news, the rebound appears a bit too hopeful in our view,' said Nathan Thooft at Manulife Investment Management in Boston, which oversees $160 billion. 'There are still a number of uncertainties that could lead to higher market volatility in the coming months. With that said, we do believe worse-case scenarios regarding tariffs are off the table.' Building a case that the Trump trade war is poised to launch the US into a recession anytime soon has gotten harder amid a parade of positive economic reports. Data this week showed both consumer and producer inflation was lower than forecast in May. On Friday, the University of Michigan said its preliminary consumer sentiment index rose, topping all expectations in a Bloomberg survey of economists. 'A steady stream of favorable, or at least neutral, headlines may keep the 'buy the dip' party going,' said Michael Bailey, director of research at FBB Capital Partners. 'The barely noticeable rise in the VIX today suggests that investors view the Israel-Iran conflict as a fairly contained geopolitical event, helping to keep the new bull market alive.' American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Wall Street's Momentum Machine Faces a Middle East Stress Test
(Bloomberg) -- It's the kind of geopolitical flashpoint that might once have triggered a full-blown market meltdown: Israeli warplanes struck Iranian nuclear sites, Tehran vowed revenge — then followed through. Oil spiked. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban Do World's Fairs Still Matter? As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Yet in a year where crises have come in waves, traders from London to New York opted to hold their breath rather than flee en masse. Yes — gold climbed, stocks slid and bonds seesawed, but there was no big stampede. The S&P 500 finished the week down modestly and remains less than 3% below its record high. Crude gave back some of its early gains. That relative calm — for now — followed a familiar playbook: Markets are shocked, prices stumble, then the habitual dip-buyers swoop in. It's a routine that has been all but cemented after months of crises that never quite landed. That got fresh impetus this week when readings on inflation and consumer sentiment came in better than estimated. The airstrikes disrupted this trading pattern Friday, without shattering it. And in the end, another Wall Street phenomenon proved equally important in salvaging the week: momentum. From risk premiums in corporate bonds to crypto and stock-market breadth, trends have stayed largely positive — evidence that money managers remain concerned that missing market rebounds this year is a bigger risk than succumbing to the dip. Now, attention turns to the weekend. With fresh escalation underway, markets are bracing for signals from the Middle East and Washington that could shape next week's mood — and test how durable the rally reflex really is. 'This has been a year where fading bad news paid off, and the FOMO theme has been growing louder,' said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. 'When that momentum becomes blind euphoria it can cause bulls to hit a brick wall at full speed, but we aren't there yet.' Of course, anxiety abounds, as it has throughout a turbulent year. Israel warned its attacks may go on for weeks, while Iran has vowed to respond forcefully. Retail buying is also slowing, money is edging into cash and gold, and bonds offered little comfort: the 10-year yield ended higher on Friday, a reminder that traditional havens are no sure thing as fiscal clouds gather. And the kicker: President Donald Trump has promised sweeping tariffs within two weeks, a potential supply-side disruption that could collide with an oil market already on edge. 'If the stock market can muscle through this, that will only increase the FOMO. It may well engender the perception that the rally is 'bullet proof,'' said Michael Purves, founder and CEO of Tallbacken Capital Advisors. 'This increases the ultimate downside risk.' By the Friday close, commodities ended up bearing the brunt of the pressure from the ongoing conflict, with oil climbing about 8% and gold testing a record high. The S&P 500 ended the week just 0.4% lower and 10-year Treasuries traded down about 10 basis points. The Cboe Volatility Index, or VIX, ended the week just above 20 as measures for bonds and currencies closed lower. One factor in the relative resilience may come from the sheer volume of shocks investors have already absorbed in 2025 — from inflation and bond convulsions to tariffs and geopolitics. While each has caused brief selloffs, the snapbacks have been fast enough to sharpen, not dull, the momentum impulse among investors. A Societe Generale SA index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals. Trends derived across fixed income, equities and currencies were all flashing green when the conflict broke out. Price action like that is hard for Wall Street's risk traders to ignore, according to SocGen's Manish Kabra. 'We look at the VIX and MOVE indexes, they're showing an element of complacency in there that's a bit surprising because of all these events that occurred,' said Phillip Colmar, global strategist at MRB Partners. 'If we hadn't gone through the April fiasco, I think that the markets would be nervous right now and more negative.' Indeed, buoyant positioning is extreme enough to give some Wall Street naysayers pause. Fear of missing out has driven extreme readings in the exchange-trade funds universe, among other places, with high-beta ETFs drawing significantly more inflows than low-beta counterparts, according to Bloomberg Intelligence's Athanasios Psarofagis. 'Just as there was overreaction to the downside from the initial tariff news, the rebound appears a bit too hopeful in our view,' said Nathan Thooft at Manulife Investment Management in Boston, which oversees $160 billion. 'There are still a number of uncertainties that could lead to higher market volatility in the coming months. With that said, we do believe worse-case scenarios regarding tariffs are off the table.' Building a case that the Trump trade war is poised to launch the US into a recession anytime soon has gotten harder amid a parade of positive economic reports. Data this week showed both consumer and producer inflation was lower than forecast in May. On Friday, the University of Michigan said its preliminary consumer sentiment index rose, topping all expectations in a Bloomberg survey of economists. 'A steady stream of favorable, or at least neutral, headlines may keep the 'buy the dip' party going,' said Michael Bailey, director of research at FBB Capital Partners. 'The barely noticeable rise in the VIX today suggests that investors view the Israel-Iran conflict as a fairly contained geopolitical event, helping to keep the new bull market alive.' American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
