DoubleLine Capital CEO Jeffrey Gundlach raised a red flag on the massive buying frenzy among retail investors this year, calling it “downright terrifying.”
“This is a terrible sign for the condition of the market for anybody who’s experienced a significant number of cycles, which I’ve definitely experienced,” Gundlach said.
The coronavirus rout brought a copious amount of new accounts to online brokers this year as amateur investors sought to get a slice of the epic market comeback.
“Of course retail investor activity is downright terrifying,” Gundlach said during an investor webcast on Tuesday, pointing to the surge in daily average trade and trade per account on online brokers. “We just see how much trading is going on in retail,” he said.