“It’s just getting started,” Varney said. “We’re talking here about the stock market turned into a casino.”
Varney said it has "everything to do with the little guy going up against the big guys of Wall Street and turning investing into a game."
“Somebody is going to get hurt,” he added.
While some big players, like Chewy's co-founder Ryan Cohen, have lucked out mightily after investing, Varney said the “little guys” have declared victory in this rally.
“They’ve beaten the short sellers and they’ve beaten some hedge funds,” he said.
"But what happens now the battle has been won? They will move on to other targets, leaving a lot of people holding the game stop bag. That’s when people start getting hurt. And heaven forbid it spreads to the broader market, undermining confidence in the whole concept of investing," he added.
Varney went on to say "this is just the beginning."
“The rise of retailer investment, coupled with investment vehicles like SPACS, will change the nature of investing,” said Varney. “I’m sure the regulators are watching.”