FOX Business' Stuart Varney, during his latest "My Take" on "Varney & Co.," argued that meme stocks and cryptocurrencies "represent a whole new element in the financial world" and "have turned investing upside down."
STUART VARNEY: I have been reporting on the stock market for more than 40 years, and I have never seen anything like this.
Meme stocks and crypto’s represent a whole new element in the financial world. They have turned investing upside down.
The action today is in AMC. That stock doubled yesterday and at one stage was up another 20% this morning. Then the company announced it would sell over 11 million shares ‘from time to time.’
Cashing in on its amazing stock market ride! AMC came down a little. But it is still up 3,000% in 2021.
Seems to me we have turned some stocks into gambling chips. Very little underlying value, investors just gambling that the next move will be up!
Now to the cryptos. A big conference begins today in Miami.
Investors will be paying close attention to their social network feeds, looking for a celebrity headline to jump on.
Bitcoin got close to $40,000 this morning, Ethereum close to $3,000.
So look what we got. Tens of billions of dollars moving very quickly into stocks which have virtually no underlying value. I could judge my investment in Microsoft by its products and profits. But AMC? Dogecoin?
This is what happens when the financial world is flooded with trillions of dollars. Parts of Wall Street have been turned into casinos. Where it ends, I do not know.