<ul><li>The VanEck Vectors Social Sentiment <keyword id="6357062" type="DEFINITION" weightage="60" keywordseo="ETF">ETF</keyword>, which trades as <keyword id="109171" type="COMPANY" weightage="60" keywordseo="Buzz">BUZZ</keyword>, fell as much as 3.4% in its trading debut.</li><li>The ETF follows an index that scrubs internet platforms for stocks enjoying strong positive sentiment.</li><li>Barstool Sports founder <keyword id="4602346" type="PERSON" weightage="60" keywordseo="dave-portnoy">Dave Portnoy</keyword> endorsed the fund on Tuesday, praising it as an effective tool for tracking online traders' favorite picks.</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingestgest">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>. </li></ul><hr />The VanEck Vectors Social Sentiment ETF, an exchange-traded fund that follows stocks trending online, dropped as much as 3.4% on its first day of public trading.The ETF, which trades under the ticker BUZZ, aims to capitalize on the growing use of online platforms as a sounding board for trade ideas. The fund tracks an index that scrubs websites like Reddit, StockTwits, and Twitter to determine which stocks are garnering the most positive sentiment online. Holdings are then weighted accordingly.<a href="https://markets.businessinsider.com/stocks/twtr-stock">Twitter</a>, <a href="https://markets.businessinsider.com/stocks/dkng-stock">DraftKings</a>, and <a href="https://markets.businessinsider.com/stocks/f-stock">Ford</a> are the fund's biggest holdings as of Thursday. That lineup will be rebalanced each month to better adhere to online stock-search trends.BUZZ traded at $23.61 per share as of 11:05 a.m. ET.The ETF's debut comes roughly one month after day traders congregating on r/WallStreetBets collectively drove <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a> shares to dizzying heights. Other so-called <keyword id="10688429" type="UNKNOWN" weightage="60" keywordseo="meme-stocks">meme stocks</keyword> including <a href="https://markets.businessinsider.com/stocks/amc-stock">AMC</a>, <a href="https://markets.businessinsider.com/stocks/expr-stock">Express</a>, and <a href="https://markets.businessinsider.com/stocks/koss-stock">Koss</a> also rallied as the trend fueled unexpected volatility. The stocks' surge reversed soon after, but the price action left a lasting impact.The Reddit-trader phenomenon prompted Wall Street to pay more attention to online chatter. Hedge funds <a href="https://www.businessinsider.com/hedge-funds-data-reddit-tracking-wallstreetbets-tickers-gamestop-short-yolo-2021-1">created tools for monitoring posts</a> on Wall Street Bets and other forums, both to protect their own short bets and see where the day traders could strike next.Investors looking to use BUZZ to profit from the online traders' rapid-fire moves are likely out of luck. The ETF's underlying index of online chatter measures conversation on stocks over a 12-month period, therefore leaving out whatever may be the next GameStop or AMC. Companies must also have a market capitalization of at least $5 billion to be included in the 75-stock ETF.The ETF still has backing from one of the more internet-savvy day traders. Barstool Sports founder Dave Portnoy <a href="https://markets.businessinsider.com/news/stocks/dave-portnoy-buzz-vaneck-social-sentiment-etf-tracking-reddit-video-2021-3-1030141965">endorsed the fund</a> in a Tuesday <a href="https://twitter.com/stoolpresidente/status/1366757688542191619">video</a>, praising the instrument as an effective way to bet on the internet's favorite equities."There is a new ETF launching that I'm a part of, that I'm putting my face behind, my reputation behind," Portnoy said.Portnoy's popularity surged through the pandemic after starting <keyword id="9417237" type="UNKNOWN" weightage="60" keywordseo="davey-day-trader">Davey Day Trader</keyword> Global, a live-stream hosted by the Barstool founder that featured him making quick bets in the stock market. The show preceded the January GameStop phenomenon and has since been viewed as a sign of retail investors' new prominence in the market.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-back-to-normal-beneficiaries-vaccines-ubs-2021-3" target="_blank" rel="noopener">UBS: Buy these 14 back-to-normal stocks now before a 'sharp acceleration' in consumer spending in Q2 as vaccinations pick up</a>

BUZZ ETF dips in trading debut as investors pass on internet-favorite stocks

<ul><li><keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">Stocks</keyword> will rise because the <keyword id="6355253" type="UNKNOWN" weightage="60" keywordseo="federal-reserve">Federal Reserve</keyword> and the day-trading boom are driving up prices, the <keyword id="366398" type="COMPANY" weightage="60" keywordseo="Bianco-Research">Bianco Research</keyword> chief James Bianco <a href="https://www.youtube.com/watch?v=t3MBJBwjWOg">told CNBC's "Fast Money" on Tuesday</a>.</li><li>The Fed's decision to buy individual corporate bonds has put a "massive floor on this market," Bianco said.</li><li>David "<keyword id="9417237" type="UNKNOWN" weightage="60" keywordseo="davey-day-trader">Davey Day Trader</keyword>" Portnoy and his "retail bros" are piling into stocks because they're confident the Fed will shore up prices, making it tough to be bearish right now, Bianco said.</li><li>"You have to find something that says it's going to be so powerful to bring the market down that even the Fed's unlimited printing and the Davey Day Trader crowd buying like mad is not going to be able to stop it," he said.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Stocks will climb higher because the Federal Reserve is shoring up prices and <keyword id="109717" type="PERSON" weightage="60" keywordseo="Day-traders">day traders</keyword> are buying without fear, James Bianco, the president of Bianco Research, <a href="https://www.youtube.com/watch?v=t3MBJBwjWOg">said on CNBC's "Fast Money" on Tuesday</a>.The US central bank's unprecedented interventions — which now include <a href="https://markets.businessinsider.com/news/stocks/federal-reserve-begins-individual-corporate-bond-purchases-secondary-market-relief-2020-6-1029309910">plowing up to $250 billion into individual corporate bonds</a> — have "put a massive floor on this market," the investment analyst said.That safety net, combined with easy access to zero-commission and fractional trading across multiple platforms, has sparked a surge in retail <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword>, Bianco said. Notably, the Barstool Sports founder David Portnoy, who goes by the nickname Davey Day Trader, now <a href="https://www.nytimes.com/2020/06/15/business/dealbook/dave-portnoy-markets.html">captains</a> an "<a href="https://www.bloomberg.com/news/articles/2020-06-12/barstool-sports-dave-portnoy-is-leading-an-army-of-day-traders?srnd=premium-europe">army</a>" of day traders, or "<a href="https://www.ft.com/content/dd6c7674-d0ed-4865-82ed-48ee169bc6cc">retail bros</a>.""When you talk to them or read the Reddit boards, the word 'Fed' always comes up — that they are not going to allow the market to go down," Bianco said.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-topranked-investors-dennis-lynch-kristian-heugh-2020-6" target="_blank" rel="noopener">Wall Street's best US and international stock-pickers have tripled their clients' money since 2010. The duo break down 5 future-proof companies that will keep investors ahead of the pack through 2030.</a>The combined forces of Fed Chair Jay Powell and Portnoy's trader platoons make it difficult to justify a bearish stance, Bianco continued."You have to find something that says it's going to be so powerful to bring the market down that even the Fed's unlimited printing and the Davey Day Trader crowd buying like mad is not going to be able to stop it, it's still going to fall," he said. "That's a high hurdle."However, Bianco cautioned that stocks were already overvalued and that "there will be a reckoning somewhere down the line," for instance, if the economy reopens but fails to bounce back.Read more: <a href="https://www.businessinsider.com/best-stocks-to-buy-investing-strategy-market-rotation-jeff-kleintop-2020-6">Schwab's global investing chief says the market's best-performing stocks are due for a surprising rotation for the first time in 12 years — and shares 3 ways to get ahead of the shift</a>Bianco <a href="https://www.cnbc.com/2020/06/16/massive-fed-support-for-stocks-pushes-james-bianco-out-of-bear-camp.html">made similar comments</a> on CNBC's "Trading Nation" on Tuesday."This is a market that's destined to go higher," he said, adding that "we could have new highs before the end of the year."Bianco, who <a href="https://www.cnbc.com/2020/03/12/market-turmoil-sparked-by-coronavirus-is-worse-than-2008-james-bianco.html">moved entirely to cash</a> in early March in response to the coronavirus threat, rationalized his shift from bear to bull."I did not appreciate what the Fed's actions to support the market were going to do to the retail community," he said.Read more: <a href="https://www.businessinsider.com/stock-market-investing-picks-retail-traders-beat-wall-street-goldman-2020-6" target="_blank" rel="noopener noreferrer">Main Street traders have been crushing Wall Street in recent months. Goldman Sachs breaks down what retail investors should buy to keep winning — and lists the 12 stocks leading the charge.</a>"There's been a massive flood of money" from retail investors, he said, because they believe that <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> "always go up, you can't lose, the Fed is there."The retail inflows show few signs of stopping and threaten to inflate an already overvalued market, Bianco added. The frenzy could be halted by a second wave of coronavirus infections, a sluggish economic recovery, or a change in the Fed's behavior, he said.But for now, he said, "I think it's foolish to stand in the way of it."Read more: <a href="https://www.businessinsider.com/stock-market-investing-how-to-short-strategy-advice-andrew-left-2020-6" target="_blank" rel="noopener">Famed short-seller Andrew Left lays out his methodology for finding the stock market's weakest links — and says he's terrified of newbie day traders that think they can outsmart Carl Icahn and Warren Buffett</a>

'Foolish to stand in the way': Fed support and the day-trading boom will drive stocks higher, an analyst says

<ul><li>Day traders are mindlessly buying and most are throwing their money away, Wealthfront's investment chief <keyword id="254200" type="PERSON" weightage="60" keywordseo="Burton-Malkiel">Burton Malkiel</keyword> <a href="https://blog.wealthfront.com/the-day-trading-pandemic/">said in a blog post this week</a>.</li><li>"Legions of new day traders have poured new money into <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> without a care for the risks involved, clearly unaware of Buffett's maxim that 'It's only when the tide goes out that you learn who's been swimming naked.'"</li><li>Their "frenzied buying" includes driving up the share prices of FANGDD — a Chinese company unrelated to FANG stocks — and bankrupt car-rental company Hertz, the Princeton economist and author of ""A Random Walk Down Wall Street" said.</li><li>"I don't confuse day traders with serious investors," Malkiel added. "Don't be misled with false claims of easy profits from <keyword id="176171" type="PERSON" weightage="60" keywordseo="day-trading">day trading</keyword>."</li><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories</a>.</li></ul>Bored day traders are making reckless bets and terrible decisions, and the vast majority will underperform the market or lose money, Wealthfront's investment chief Burton Malkiel warned on the <a href="https://blog.wealthfront.com/the-day-trading-pandemic/">robo-adviser's blog this week</a>.The coronavirus pandemic has sparked "full-blown mania" in financial <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>, the Princeton economist and author of "A Random Walk Down Wall Street" said. "Individuals, cooped up at home, working remotely on flexible schedules, with no social activities and no live sports to watch and bet on, have increasingly turned to day trading in the stock market," Malkiel continued.Their wild trades may be partly to blame for choppy markets in recent weeks, he added.Read more: <a href="https://www.businessinsider.com/stock-market-crash-retail-trading-bubble-to-pop-albert-edwards-2020-6" target="_blank" rel="noopener">A notorious market bear says inexperienced 'zombie investors' are fueling a stock-market bubble — and warns that even the Fed won't be able to prevent another 30% crash</a>While <keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>, <keyword id="216095" type="PERSON" weightage="60" keywordseo="Howard-Marks">Howard Marks</keyword>, and other veteran investors have been "extremely cautious" and even <a href="https://markets.businessinsider.com/news/stocks/why-warren-buffett-invested-big-4-airlines-sold-them-loss-2020-5-1029167021">sold stocks</a> because they're worried about the virus' economic fallout, the market's newest entrants are showing no fear, Malkiel said."Legions of new day traders have poured new money into stocks without a care for the risks involved, clearly unaware of Buffett's maxim that 'It's only when the tide goes out that you learn who's been swimming naked.'"Barstool Sports founder David Portnoy, who goes by the nickname "<keyword id="9417237" type="UNKNOWN" weightage="60" keywordseo="davey-day-trader">Davey Day Trader</keyword>," is probably the best-known member of the movement. He now <a href="https://www.nytimes.com/2020/06/15/business/dealbook/dave-portnoy-markets.html" target="_blank" rel="noopener">captains</a> an "<a href="https://www.bloomberg.com/news/articles/2020-06-12/barstool-sports-dave-portnoy-is-leading-an-army-of-day-traders?srnd=premium-europe" target="_blank" rel="noopener">army</a>" of day traders, or "<a href="https://www.ft.com/content/dd6c7674-d0ed-4865-82ed-48ee169bc6cc" target="_blank" rel="noopener">retail bros</a>."Malkiel pointed to two recent examples of "frenzied buying" by day traders on Robinhood:<ul><li>Driving the stock price of FANGDD, a Chinese online real-estate group, up more than 2,000%, likely because it has a similar name to the FAANG group of stocks.</li><li>Helping to more than double Hertz's stock price after the car-rental agency filed for bankruptcy, perhaps because they weren't aware that shareholders are almost always wiped out in the bankruptcy process.</li></ul>Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-for-dividend-payments-amid-recession-cuts-2020-6" target="_blank" rel="noopener">Jefferies created a 6-step process for finding companies that will keep paying strong dividends — and landed on these 20 global stocks as 'rock-solid' picks</a>The economist and author added that almost all individual traders suffer losses over time, highlighting three studies to support his claim:<ul><li>Active traders on Charles Schwab <a href="https://faculty.haas.berkeley.edu/odean/Papers%20current%20versions/Individual_Investor_Performance_Final.pdf">significantly underperformed</a> a low-cost index fund over a six-year period.</li><li><a href="http://faculty.haas.berkeley.edu/odean/papers/Day%20Traders/Day%20Trading%20Skill%20110523.pdf">Less than 1%</a> of Taiwanese traders consistently beat a low-cost ETF over a 15-year period, and 80% lost money.</li><li>97% of Brazilian day traders <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423101">lost money</a>, and just 1% earned more than the national minimum wage.</li></ul>Malkiel also emphasized that savvy investors diversify and rebalance their holdings, manage their tax burdens, avoid trying to time the market, stick to their convictions, and use investment structures such as low-fee ETFs."I don't confuse day traders with serious investors," he said. "Don't be misled with false claims of easy profits from day trading."Read more: <a href="https://www.businessinsider.com/stock-market-crash-30-year-investing-vet-explains-imminent-pop-2020-6" target="_blank" rel="noopener">A 30-year market veteran explains why we're in 'one of the nutsiest bubbles in the history of bubbledom' — and warns of an 'underwater' economy for the next several years</a>

'Don't confuse day traders with serious investors': Warren Buffett and Howard Marks will win over time, Princeton economist says

<ul><li>There has been a surge in retail-trading activity since COVID-19 stay-at-home orders swept the nation.</li><li>Part of the increase in trading activity by retail <keyword id="6359051" type="UNKNOWN" weightage="60" keywordseo="investors">investors</keyword> has been chalked up to sports bettors speculating on <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> because of the suspension of professional sports leagues during the pandemic.</li><li>Barstool Sports' David Portnoy, aka Davey <keyword id="134012" type="POSITION" weightage="60" keywordseo="day-trader">Day Trader</keyword>, has led the charge of introducing a new audience to stocks — his trading videos often get up to 1 million views on Twitter.</li><li>This group of traders has been betting on beaten-down stocks that veteran <keyword id="25931" type="COMPANY" weightage="60" keywordseo="billionaire">billionaire</keyword> investors like Warren Buffett and Carl Icahn have abandoned. And they're starting to win.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Visit Business Insider's homepage for more stories</a>.</li></ul><keyword id="1268253" type="PERSON" weightage="60" keywordseo="Robinhood">Robinhood</keyword> traders have been placing big bets against veteran billionaire investors, and they're starting to win.Since COVID-19 stay-at-home orders swept the nation, there's been a surge in retail-brokerage trading, partly fueled by a new group of investors looking for excitement as professional sports leagues are suspended.Barstool Sports' David Portnoy, <a href="https://twitter.com/stoolpresidente">known as Davey Day Trader on Twitter</a>, has led the charge in introducing a new audience to <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> through the videos he posts on Twitter, which often get up to 1 million views. He often talks about the stocks he's trading and why he's trading them, before going on impassioned rants about the market and political environment.Recently, this new group of traders has been betting against the likes of veteran billionaire investors including Warren Buffett, Carl Icahn, and Stanley Druckenmiller.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-cheap-cash-rich-companies-for-recovery-2020-6" target="_blank" rel="noopener">'The real opportunity is in individual stocks': A Wall Street research chief shares 5 picks that are poised to thrive in a world after COVID — including a retailer that could double from today's levels</a>First up is Buffett and the airline stocks.In early May, Buffett said Berkshire Hathaway had <a href="https://markets.businessinsider.com/news/stocks/big-4-airline-stocks-plunge-warren-buffett-berkshire-hathaway-sell-2020-5-1029160193?utm_source=markets&amp;utm_medium=ingestgest">liquidated its stake in the "big four" airlines</a>. Around the same time, Robinhood investors and Portnoy started piling into airline stocks, as evidenced by <a href="https://markets.businessinsider.com/news/stocks/airline-stocks-etf-investors-bet-against-warren-buffett-assets-surge-2020-5-1029172209">a surge in assets</a> in the <a href="https://markets.businessinsider.com/etfs/us-global-jets-etf-us26922a8421">US Global Jets exchange-traded fund</a>.Since Buffett revealed that he sold his airline stocks, the ETF has surged 55%.Robinhood traders: 1. Veteran billionaire investors: 0.Next up is Icahn and <a href="https://markets.businessinsider.com/stocks/htz-stock">Hertz</a>.In late May, Icahn said in a Securities and Exchange Commission filing that <a href="https://markets.businessinsider.com/news/stocks/investor-carl-icahn-sells-entire-hertz-stake-2-billion-loss-2020-5-1029240688?utm_source=markets&amp;utm_medium=ingest#:~:text=Carl%20Icahn%20dumped%20his%2039,week%2C%20a%20financial%20filing%20showed.wed.">he liquidated his position in Hertz</a> at an average price of $0.72 per share, representing a loss of more than $1.8 billion. Hertz recently <a href="https://www.businessinsider.com/hertz-filing-for-bankruptcy-as-early-as-this-weekend-report-2020-5?utm_source=markets&amp;utm_medium=ingestgest">filed for bankruptcy,</a> sending its shares into a tailspin.But retail traders, apparently not scared that Hertz's equity could be wiped out by its bankruptcy proceedings, have piled into the stock. The number of Robinhood accounts that own Hertz has <a href="https://markets.businessinsider.com/news/stocks/hertz-stock-price-skyrockets-since-filing-bankruptcy-traders-global-holdings-2020-6-1029285231">nearly doubled since the start of its bankruptcy proceedings</a>, to 73,000 as of Friday.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-11-companies-3-month-outperformance-ms-2020-6?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener noreferrer">MORGAN STANLEY: Buy these 11 stocks right now to reap the strongest possible market-beating returns over the next 3 months</a>Since Icahn liquidated his position, Hertz has skyrocketed more than 400%.Robinhood traders: 2. Veteran billionaire investors: 0.Last up is Druckenmiller, <keyword id="276821" type="PERSON" weightage="60" keywordseo="David-Tepper">David Tepper</keyword>, and Chamath Palihapitiya.In mid-May, the trio said in individual interviews with CNBC and the Economic Club of New York that stocks were too high. <a href="https://markets.businessinsider.com/news/stocks/stanley-druckenmiller-says-stock-market-overvalued-fed-cant-protect-economy-2020-5-1029197205?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">Druckenmiller called</a> the market set-up at the time one of the worst risk-reward profiles he'd ever seen. <a href="https://markets.businessinsider.com/news/stocks/david-tepper-stock-market-overvalued-billionaire-investor-calls-valuation-appaloosa-2020-5-1029198918?utm_source=markets&amp;utm_medium=ingestgest">Tepper called</a> the stock market the second most overvalued in history. And <a href="https://markets.businessinsider.com/news/stocks/chamath-palihapitiya-says-economy-is-divorced-stock-market-fed-warning-2020-5-1029193570">Palihapitiya said</a> the <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> were "too damn high."But retail traders continued to pile into the market. <a href="https://robintrack.net/symbol/SPY">According to data from Robintrack</a>, more than 12,000 Robinhood accounts bought the <a href="https://markets.businessinsider.com/etfs/spdr-sp-500-etf-trust-us78462f1030">SPDR S&amp;P 500 ETF</a> since the investors' comments in mid-May, bringing the total to nearly 100,000.Read more: <a href="https://www.businessinsider.com/esg-investing-strategy-stock-picks-growth-fund-manager-karina-funk-2020-6" target="_blank" rel="noopener">An environmentally conscious fund manager with a 5-year winning streak against the competition lays out how she's uncovering surprising growth, and her top 3 strategies for the future</a>Since then, the S&amp;P 500 index has rallied 15%, and <a href="https://markets.businessinsider.com/news/stocks/druckenmiller-humbled-markets-missing-historic-stock-rally-coronavirus-returns-tech-2020-6-1029289172">Druckenmiller said on Monday</a> that he'd been "humbled" by the recent rally in the stock market.Robinhood traders: 3. Veteran billionaire investors: 0.While retail traders have been on the winning side of trades against billionaire investors in the short term, what happens in the long term is still up in the air.<a href="https://www.businessinsider.com/economy-biggest-threat-second-wave-coronavirus-infections-us-covid19-survey-2020-6">Economists have said</a> that a second wave of COVID-19 infections poses the biggest threat to the US economy this year. If a second wave does in fact hit the US, retail traders would be wise to book some profits after such a strong and quick rally.Read more: <a href="https://www.businessinsider.com/stock-market-investing-strategy-for-coroanvirus-recession-recovery-morgan-stanley-2020-6" target="_blank" rel="noopener">MORGAN STANLEY: The stock market is entering a new phase of a playbook that's thrived in past recessions. Here's how to tweak your portfolio to take advantage.</a>

Robinhood traders are betting against veteran billionaire investors like Warren Buffett and Carl Icahn — and they're winning

Here's what you need to know before <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> open. 1. <a href="https://markets.businessinsider.com/news/stocks/bank-of-england-unveil-another-125-billion-stimulus-package-2020-6-1029316294">The Bank of England is set to unveil another $125 billion stimulus package as it fights coronavirus</a>. Data released by the country's statistics authority showed inflation dropped to a four-year-low of 0.5% in May.2. <a href="https://www.businessinsider.com/coronavirus-stimulus-bank-of-japan-pledges-over-1-trillion-2020-6">Bank of Japan boosts its coronavirus stimulus plan to more than $1 trillion amid 'extremely severe' economic crash</a>. Japan has been one of the least infected major economies from coronavirus, with fewer than 1,000 people dying in the country — less than 1% of the death toll seen in the US.3. <a href="https://www.businessinsider.com/foolish-stand-in-way-fed-money-day-traders-james-bianco-2020-6">'Foolish to stand in the way': Fed support and the day-trading boom will drive stocks higher, analyst says</a>. It's tough to be a bear with "the Fed's unlimited printing and the Davey Day Trader crowd buying like mad," Bianco's research chief said.4. <a href="https://www.businessinsider.com/zuckerberg-facebook-will-allow-users-to-turn-off-political-ads-2020-6">Mark Zuckerberg announces Facebook will now allow users to turn off political ads</a>. "We'll still remind you to vote," Zuckerberg said.5. <a href="https://www.businessinsider.com/apple-developer-rage-30-percent-app-store-tax-2020-6">Apple is facing rage and insurrection from developers over the commission it charges apps on the App Store</a>. The standoff is with buzzy new subscription email service Hey over integrating in-app purchases into its iOS app and taking up to 30% commission on payments.6. <a href="https://www.businessinsider.com/hsbc-resumes-cutting-around-35000-jobs-memo-2020-6">HSBC resumes cutting around 35,000 jobs.</a> "We could not pause the job losses indefinitely — it was always a question of 'not if, but when'," chief executive Noel Quinn said.7. <a href="https://www.businessinsider.com/united-airlines-sweetens-voluntary-exit-deal-for-flight-attendants-2020-6">United Airlines sweetens voluntary exit deal for flight attendants</a>. Under the new deal, flight attendants would receive a $1,500 health credit for every year worked, up to $45,000.8. <a href="https://www.businessinsider.com/tesla-signs-three-year-pricing-deal-with-battery-cell-maker-panasonic-2020-6">Tesla signs three-year pricing deal with battery cell maker Panasonic</a>. Panasonic hinted in May that it was working to develop new batteries with the electric-vehicle maker, possibly with higher capacity.9. Global stocks are mostly up. In Europe, Germany's DAX rose 0.3%, Britain's FTSE 100 rose 0.4%, and the Euro Stoxx 50 rose 0.3%. In Asia, China's Shanghai Composite rose 0.2%, Hong Kong's Hang Seng rose 0.6%, and Japan's Nikkei fell 0.6% at the close. In the US, futures underlying the Dow Jones Industrial Average, the S&amp;P 500, and the Nasdaq rose 0.4%.10. <a href="https://markets.businessinsider.com/economic-calendar">On the data docket today</a>. Housing Starts Change, the Energy Information Administration's Crude Oil Stocks Change, and Federal Reserve Chairman Jerome Powell's second day of testimony are scheduled for later today.Join Business Insider on July 8 at 12 p.m. ET for "Planning for the Future in Uncertain Times," a free digital event and part of the Master Your Money series. Presented by Fidelity, it will explore components of a strong financial plan and how to adjust it given recent events. <a href="https://slack-redir.net/link?url=https%3A%2F%2Fevent.on24.com%2FeventRegistration%2FEventLobbyServlet%3Ftarget%3Dreg30.jsp%26partnerref%3Deditor_newsletter%26eventid%3D2421485%26sessionid%3D1%26key%3DB77CA071AA13C5EB5DC445AFD40F1885%26regTag%3D%26sourcepage%3Dregister" target="_blank" rel="noopener noreferrer">Click here to register</a>.

10 things you need to know before the opening bell

<ul class="summary-list"><li>Robinhood-user Richard Dobatse said he turned $15,000 into $1 million, and then lost everything.</li><li>He told the New York Times: "They make it so easy for people that don't know anything about stocks. Then you go there and you start to lose money."</li><li>He said he is planning to appeal his case to financial regulators for arbitration. </li><li>Dobatse's story is a cautionary tale about the dangers of day-trading, and how quickly losses can mount.</li></ul>One of the most painful examples of the perils of the day-trading boom has emerged, after an amateur trader turned $15,000 into $1 million, then lost it all, the <a href="https://www.nytimes.com/2020/07/08/technology/robinhood-risky-trading.html">New York Times </a>reported this week.31-year old Richard Dobatse told the New York Times he initially funded his account by taking out $15,000 credit and two $30,000 home-equity loans to fund early losses. He turned those loans and credit into about $1 million, he told the Times. But within months he lost almost everything with only $6,956 left in his account this week. Dobatse told the New York Times: "They make it so easy for people that don't know anything about stocks. Then you go there and you start to lose money."Read more: <a href="https://www.businessinsider.com/30-stock-picks-to-buy-now-profit-improving-economy-jefferies-2020-7" target="_blank" rel="noopener">Jefferies says buy these 30 stocks best-positioned to beat the market as signs point to an economic rebound</a>He said he is planning to appeal his case to financial regulators for arbitration.Online trading platform <keyword id="1268253" type="PERSON" weightage="60" keywordseo="Robinhood">Robinhood</keyword> has taken the investment world by storm in recent months, evidenced by a surge in account openings. More than 3 million new accounts have been created this year with many mom-and-pop traders turning to the stock market to make quick money when <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> tanked in March. Dave Portnoy, founder of Barstool sports, turned investor has become the <a href="https://www.businessinsider.com/dave-portnoy-interview-why-warren-buffett-airline-stock-sale-wrong-2020-6">poster-child of day-trading</a> in recent months with his aggressive "Davey Day Global Videos," often boasting unprecedented bullishness and posting videos touting many gains. While Portnoy told Business Insider last month that he plans to <a href="https://markets.businessinsider.com/news/stocks/day-trading-slow-dave-portnoy-analysts-disagree-2020-6-1029347351#">return to sports</a> once activity resumes and effectively leave day-trading, gambling experts told Business Insider that they think many sports gamblers may remain invested in stock markets. Read more: <a href="https://www.businessinsider.com/next-stock-market-crash-options-market-retail-traders-peter-tchir-2020-7" target="_blank" rel="noopener">A Wall Street expert sees a retail-investing trend that preceded the dot-com bubble and financial crisis bubbling up again — and warns it will end 'abruptly and painfully' for the stock market</a>Markets have been divided whether to applaud Robinhood traders for timing the market effectively, or to blame them from falsely inflating stock prices and taking risks beyond their means. Billionaire investor <a href="https://markets.businessinsider.com/news/stocks/robinhood-trading-will-end-in-tears-billionaire-cooperman-warns-2020-6-1029312249#">Leon Cooperman</a> said last month: "They are just doing stupid things, and in my opinion, this will end in tears."However, not all amateur traders <a href="https://www.businessinsider.com/stock-market-day-trader-reddit-claimed-3500-percent-gains-pandemic-2020-7">seem to have lost their money.</a>A Reddit user on the site's "WallStreetBets" forum with username mori226, claimed on Wednesday they turned $35,000 into $1.25 million during the throes of the pandemic "I cracked the 7-figure mark, and then some," the trader said in a <a href="https://www.reddit.com/r/wallstreetbets/comments/hnk0r9/35k_125m_in_4_months/?utm_source=share&amp;utm_medium=ios_app&amp;utm_name=iossmfe=iossmf" target="_blank" rel="noopener">post</a> published on Wednesday. The claims have not been verified.Read more: <a href="https://www.businessinsider.com/gen-z-millennial-day-retail-trader-interviews-wall-street-options-2020-7" target="_blank" rel="noopener">Wall Street is being shaken to its core by a legion of Gen Z day traders. From a casual hobbyist to a 20-year-old running a 14,000-person platform, meet the new generation of retail investors.</a>

An amateur investor turned $15,000 into $1 million then lost it all, the latest cautionary tale in the day-trading frenzy

<ul class="summary-list"><li><a href="https://barstoolsports.com/">Barstool Sports</a> founder <a href="https://twitter.com/stoolpresidente">Dave Portnoy</a> is down about $647,000 after becoming a day trader to substitute for the lack of <keyword id="6356028" type="UNKNOWN" weightage="100" keywordseo="sports">sports</keyword> <keyword id="6366684" type="UNKNOWN" weightage="60" keywordseo="gambling">gambling</keyword> amid the coronavirus pandemic.</li></ul><ul class="summary-list"><li>Portnoy deposited $3 million into an E-Trade account and <a href="https://twitter.com/i/broadcasts/1mrGmQYknkgGy">live-streams</a> his daily trading activities on his Twitter page.</li><li>Portnoy's net worth ballooned in January when <keyword id="1511100" type="PERSON" weightage="60" keywordseo="barstool">Barstool</keyword> <a href="https://www.businessinsider.com/barstool-sports-stake-selling-penn-national-valuation-450-million-2020-1">announced</a> it was selling a majority stake to <a href="https://markets.businessinsider.com/stocks/penn-stock">Penn National Gaming</a> in a deal that valued the company at about $450 million. </li><li>Portnoy told Business Insider that his day trading experience could be viewed as a "cautionary tale."</li><li>He added that aspiring day traders should avoid investing money that they can't afford to lose. </li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul> When the coronavirus suspended all major sports leagues — specifically, the ability to gamble on them — <a href="https://barstoolsports.com/">Barstool Sports</a> founder <a href="https://twitter.com/stoolpresidente">Dave Portnoy</a> saw an opportunity: the <keyword id="6357440" type="DEFINITION" weightage="60" keywordseo="Stock-Market">stock market</keyword>. Portnoy deposited $3 million into an E-Trade account, and he changed the name of the company's daily gambling radio show on Sirius/XM, known as "Picks Central" to "Stocks Central." On March 23, Portnoy <a href="https://www.barstoolbets.com/blogs/2154120/davey-daytrader-will-be-live-streaming-from-opening-bell-to-final-bell-for-duration-of-quarantine">proclaimed</a>, "I have become a full-time day trader," announcing that his day trading odyssey would be live-streamed every day "for the duration of quarantine." Portnoy also included in his announcement a candid admission that "to be very clear, I have zero clue what I'm doing."<blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">—Dave Portnoy (@stoolpresidente) <a href="https://twitter.com/mims/statuses/1252225346361049088?ref_src=twsrc%5Etfw">April 20, 2020</a></blockquote>By the end of the first week, Portnoy said he was down about $200,000. On April 17, Portnoy told Business Insider that his losses had increased to about $740,000. By the end of the trading day on April 20, Portnoy said he managed to recoup about $93,000, bringing his updated losses to $647,000. Portnoy spoke with Business Insider via Skype at the end of the trading day on April 16. "I put $3 million to start into my E-trade account, and that was, like, my day trade money that I was going to play around with," Portnoy said. "I have a normal investment account that I don't touch. So that's separate. I've never really day traded before. I think I've bought one stock in my life, maybe two. I jumped into it and started trading." Portnoy solidified his status as a multimillionaire in 2016 when Peter Chernin's Chernin Digital Group <a href="https://www.businessinsider.com/watch-barstool-sports-bizarre-acquisition-announcement-2016-1">acquired</a> his <a href="https://www.businessinsider.com/barstool-sports-sexism-ceo-responds-2018-2">controversial</a>, comedic sports brand. And his net worth ballooned in January of this year when Barstool <a href="https://www.businessinsider.com/barstool-sports-stake-selling-penn-national-valuation-450-million-2020-1">announced</a> it was selling a majority stake to Penn National Gaming in a deal that valued the company at about $450 million. Since the crisis hit, Penn's stock price has <a href="https://markets.businessinsider.com/stocks/penn-stock">plummeted</a>, and according to Portnoy, his net worth took a major hit. "I think my net worth was around $100 million," Portnoy said. "Literally probably cut in half, maybe more now." Portnoy's daily live-stream, dubbed "Davey Day Trader," broadcasts live from his Twitter account, which boasts 1.2 million followers. When Portnoy gets frustrated by the performance of a stock, he unleashes intense, often expletive-laden rants akin to those commonly seen in the pre-coronavirus era, when Portnoy live-streamed his reactions to sporting events on which he'd gambled large sums of money. "I like betting on sports," Portnoy said. "Sports ended, and this was something that was still going that I could do during the day." Portnoy admits that, before his experiment with day trading, his knowledge of the stock market was limited. "I liked the movies 'Wall Street' and 'Wolf of Wall Street' and all that stuff as much as the next guy," Portnoy said. "It's always been something that's interesting to me, almost like how the mob may interest somebody. You watch the movies. You're not in it. That's kind of how I looked at Wall Street." Portnoy's daily broadcast is more of a reality show than a movie, giving viewers a real-time look at the decision-making process that fuels his trades. According to Portnoy, his positions are often motivated by a combination of volume and volatility that he hopes will result in opportunities for quick profits. "I'm not trying to just buy something and hold it," Portnoy said. "I was looking for things I could buy and trade in the same day." His strategy backfired when he shorted the struggling airplane manufacturer Boeing and panicked when the stock started to surge. "I bought Boeing around $140, and it went up to, I want to say, $170," Portnoy said. "So I sold it. The next day it dropped all the way back down to $140. To me, there was no rhyme or reason to what happened." According to Portnoy, he lost about $2 million on Boeing alone, an amount he's made up for with positive gains in other areas of his portfolio. "Somebody made a lot of money doing that. I don't know who — I call them the pinstripes with the mismatched collars.' Somebody is driving stock market volatility, and I don't know how or who." Despite his losses, Portnoy managed to monetize the Davey Day Trader live-stream, inking a deal with an eye-wear company to sponsor the broadcast. He continues to trade with his own money to raise the stakes for what has become engaging content for a sports <keyword id="6354777" type="COMPANY" weightage="60" keywordseo="Media">media</keyword> company in a time where there are no sports. "I can't have the reactions I have, which are very authentic unless I have significant skin in the game," Portnoy said. "I'm not faking anything I'm going through, but I went into it knowing there's a chance this may not work for me. So far, it hasn't worked." Portnoy acknowledged the possibility that his legion of fans, known as "Stoolies" may follow his lead and attempt to enter the world of day trading. "Do not do it thinking you're going to make money," Portnoy said. "Do it for <keyword id="4578" type="COMPANY" weightage="60" keywordseo="entertainment">entertainment</keyword>, do it for fun. I would never day trade with money that you can't afford to lose. "And if you're looking to invest, it's long term, not the short. If you're doing what I'm doing, be prepared to lose." Read the original article on <a href="https://www.businessinsider.com/barstool-sports-founder-dave-portnoy-tries-day-trading-and-loses-2020-4">Business Insider</a>

Barstool Sports founder switches from gambling to day trading during Coronavirus — and he's down $647,000

<ul class="summary-list"><li>Dave Portnoy, the poster child of the day-trading revolution, warned that it may come to a rapid halt once people with regular nine-to-five jobs return to work, and <keyword id="6356028" type="UNKNOWN" weightage="60" keywordseo="sports">sports</keyword> returns.</li><li>In an interview with Business Insider, Portnoy said: "It's probably a lot harder to be day trading and paying attention to the stock market when you have a normal nine to five job."</li><li>However, industry analysts disagree.</li><li>"There is no reason to think there will be some mass exodus once sports come back," one analyst told Business Insider.</li></ul>As <keyword id="71409" type="CITY" weightage="60" keywordseo="Casinos">casinos</keyword> begin to open up this month, Dave Portnoy, the founder of <keyword id="4133303" type="PERSON" weightage="60" keywordseo="barstool-sports">Barstool Sports</keyword> said he is eager to flock back to the sports betting industry, but market players don't think he will be returning to the same industry that he left before COVID-19 kicked-off. The sports bettor turned investor turned to day trading and the stock market, in the same way as other bettors have when the novelty coronavirus pandemic brought <a href="https://www.businessinsider.com/barstool-sports-founder-dave-portnoy-tries-day-trading-and-loses-2020-4?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">sporting events to a halt. </a>Portnoy told Business Insider in an exclusive interview via Zoom last week: "I don't think COVID-19 will affect sports gambling at all. And I think a lot of people will be in my shoes where they'll have to go back to work. So, uh, it's probably a lot harder to be day trading and paying attention to the stock market when you have a normal nine to five job," he said.Penn National Gaming, which bought a 36% stake in Barstool Sports earlier this year, is working to open its casino and gaming operations in the same way as several other casinos across the country are.Read more: <a href="https://www.businessinsider.com/market-crash-expert-dr-doom-nouriel-roubini-decade-of-depression-2020-6" target="_blank" rel="noopener">A market-crash expert known as 'Dr. Doom' warns a 10-year depression is coming — and says investors are far too confident about a possible recovery</a>In recent weeks, <a href="https://markets.businessinsider.com/news/stocks/dave-portnoy-day-trading-bullishness-stock-market-risk-peter-cecchini-2020-6-1029306170">Portnoy has become the poster child of a surge in day trading</a> that has helped push <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> to record highs, and led some to speculate that <a href="https://markets.businessinsider.com/news/stocks/stock-market-bubble-real-mccoy-investor-jeremy-grantham-2020-6-1029320808">the next great bubble may be inflating in the markets</a>.Portnoy has gained widespread attention for his aggressive style and bombastic videos <a href="https://www.youtube.com/watch?v=12mLczX6FX8">under the nickname "Davey Day Trader."</a>But industry players think what began as a pastime for many sports fans in the absence of any live action may become a somewhat permanent part of sports bettors' lives. Scott San Emeterio, chief executive and founder of of BallStreet Trading, said: "<keyword id="1268253" type="PERSON" weightage="60" keywordseo="Robinhood">Robinhood</keyword> started a movement by focusing on the next generation of potential traders. They changed the status quo by focusing on a more gamified experience to attract younger traders. We are seeing a retail revolution within technology that makes it easy, accessible and fun to trade."Emeterio pointed out given the number of new accounts and volume across the retail trading space, "there is no reason to think there will be some mass exodus once sports come back."Read more: <a href="https://www.businessinsider.com/real-estate-investment-strategy-multifamily-units-syndication-holdfolio-jacob-blackett-2020-6?r=US&amp;IR=TIR=T" target="_blank" rel="noopener noreferrer">From a late-night infomercial to a 1,040-unit empire worth $188 million, how Jacob Blackett perfected his real-estate-investing strategy after losing $70,000 on his first deals</a>Online platform Robinhood has seen a surge in account openings, with more than 3 million new accounts created this year. Robinhood has more than 13 million users, with an average user age of 31. "With a potential second COVID wave, the election in November, trade wars and global politics, the market never has an offseason. You might see less volume, but the return of sports alone won't distract new traders. People will trade during the day and bet on sports at night," Emeterio added. Emeterio is not alone. Denis Ehling, business litigation partner at Blank Rome, said: "I would certainly expect some punters to remain active in the stock markets, if only because the stock markets offer different opportunities for big gains (and big losses) than what is available in the typical sports betting markets."Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-travel-outdoors-post-coronavirus-morgan-stanley-2020-6" target="_blank" rel="noopener noreferrer">Morgan Stanley handpicks 10 stocks to buy now for the richest profits as travel and outdoor activities transform in the post-pandemic world</a><h2>End of brick and mortal model? </h2>Experts also pointed out that the risks of a second wave of infections hitting the US is going to lead to fewer people going to casinos and force operators to change their digital models. Emeterio said: "The pandemic and this experience away from conventional sports betting will create real demand for more market-focused sports betting options. "Ehling said: "One thing that has clearly happened as a result of the pandemic is that, in the US, regulators have realized that, even if there are events to bet on, sports betting stagnates if punters need to visit their local bricks-and-mortar casino to sign-up (or, worse yet, to effectively fund their accounts). "He added: "One lasting change I think we will see is efforts to make it easier for punters to do both of those things, couched as well with an understanding that increased access means increased chances for a number of people to experience problem gambling."Read more: <a href="https://www.businessinsider.com/stock-market-investing-strategy-picks-recommendations-hidden-gems-aram-green-2020-6" target="_blank" rel="noopener noreferrer">Aram Green has crushed 99% of his stock-picking peers over the last 5 years. He details his approach for finding hidden gems — and shares 6 underappreciated stocks poised to dominate in the future</a>

Dave Portnoy says the day-trading revolution will slow down once sports return and people go back to work, but gambling analysts aren't so sure

<ul><li>Barstool Sports founder David Portnoy has made waves in recent weeks for his rambunctious day-trading and encouragement of similar risk-loving investors. </li><li>Yet Portnoy's actions point to a severe dislocation between stock prices and economic reality that risks a return to bearish territory, according to <keyword id="891986" type="PERSON" weightage="60" keywordseo="Peter-Cecchini">Peter Cecchini</keyword>, the former global chief market strategist at Cantor Fitzgerald.</li><li>Government stimulus checks accelerated the growth of casual retail investing with discount brokerages like Robinhood, Cecchini said.</li><li>Combine the influx of "found money" with relief from the Federal Reserve and Congress, and the market rally rests on "an unholy speculative mix," Cecchini wrote in a Friday <a href="https://www.linkedin.com/posts/petercecchini_check-in-with-cecchini-activity-6677181553900048384-IM4Q">LinkedIn post</a>.</li><li><a href="https://www.businessinsider.com/?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestutm_source=msn.com&amp;utm_medium=referral&amp;utm_content=msn-slideshow&amp;utm_campaign=bodyurlutm_campaign=bodyurl">Visit the Business Insider homepage for more stories</a>.</li></ul>When the <a href="https://markets.businessinsider.com/index/s&amp;p_500_500">S&amp;P 500</a> turned positive year-to-date in the final minutes of Monday's session, experts were already warning of an overextended rally.This was before Barstool Sports' flippant founder <keyword id="4602346" type="PERSON" weightage="60" keywordseo="dave-portnoy">Dave Portnoy</keyword> began pulling his <a href="https://twitter.com/stoolpresidente" target="_blank" rel="noopener">1.5 million Twitter followers</a> into the market with videos touting hefty gains and unrivaled bullishness. While the media giant notes in his "Davey Day Trader Global" videos that he isn't a financial advisor, he frequently espouses the naively optimistic mantra that "<keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> only go up."Not all observers share his positivity, and some are pointing to it as a perfect symbol for how dislocated equity prices are from the greater economy. Peter Cecchini, former global chief market strategist at Cantor Fitzgerald, deems the phenomenon the "Portnoy Top.""His attention-getting, wild style is emblematic of just how emotional and extreme equity <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> are now," Cecchini said in a <a href="https://www.linkedin.com/posts/petercecchini_check-in-with-cecchini-activity-6677181553900048384-IM4Q">LinkedIn post</a> on Friday. "It's both impulsive and compulsive. His behavior really just explains everything."The strategist pointed to a specific tweet to introduce his hypothesis. On Tuesday, Portnoy uploaded a video claiming he "<a href="https://twitter.com/stoolpresidente/status/1270350291653791747">killed</a>" legendary investor Warren Buffett with his recent day-trading success."I'm sure Warren Buffett is a great guy but when it comes to stocks he's washed up. I'm the captain now," he wrote.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-cheap-companies-with-earnings-upside-goldman-2020-6" target="_blank" rel="noopener">GOLDMAN SACHS: Buy these 9 dirt-cheap stocks now before their share prices catch up to their strong earnings upside</a>By Thursday's close, equities had <a href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-indexes-plunge-fed-economy-warning-covid19-2020-6-1029302113">fallen the most since March</a> and dragged the S&amp;P 500 back to a year-to-date loss. Portnoy characterized the session as a "<a href="https://twitter.com/stoolpresidente/status/1271057372283314176?s=20">bloodbath</a>," but returned to <a href="https://twitter.com/stoolpresidente/status/1271418341274550273?s=20">cheering on wins</a> come Friday morning.Portnoy's legion of energetic retail investors existed well before his trading streams began in March. The trend emerged last year, Cecchini said, when popularity in zero-fee brokerage accounts soared. Anyone with a smartphone, funds, and interest in the <keyword id="6357440" type="DEFINITION" weightage="60" keywordseo="Stock-Market">stock market</keyword> was able to join a flood of speculative bets fueled by hype over fundamentals.The movement grew more important once the coronavirus pandemic began. Government relief checks created a "never-before-seen dynamic," Cecchini said, noting that the swaths of "found money" drove an influx of capital from casual traders. That new financial ammunition was soon met with trillions of dollars in economic relief from the Federal Reserve and Congress."When combined with easy access to markets through platforms like Robinhood, it's an unholy speculative mix," Cecchini said.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-beat-market-recession-recovery-tom-lee-2020-6" target="_blank" rel="noopener">Renowned strategist Tom Lee nailed the market's 40% surge from its worst-ever crash. Here are 17 clobbered stocks he recommends for superior returns as the recovery gains steam.</a>Risk-taking activity compounded, and as institutional and retail investors alike rushed back to stocks, prices rapidly recovered. For roughly two months, it seemed as though Portnoy was right in claiming "stocks only go up."As outspoken as Portnoy is, Cecchini sees him as a symptom of the risk-on zeitgeist. Congress and the Federal Reserve plunged investors into "an unbreakable cycle of addiction to not only monetary policy but also fiscal policy," he said. Portnoy's limitless confidence isn't a call to action, but a warning of the correction to come, Cecchini added. "This may be the reason why David Portnoy just thinks stocks go up and up ... can he really be serious?" the strategist said. "It's not about him; it's about what the rants represent."Now read more markets coverage from Markets Insider and Business Insider:<a href="https://www.businessinsider.com/stock-market-investing-strategy-picks-themes-fund-manager-mitch-rubin-2020-6" target="_blank" rel="noopener">A fund manager crushing 98% of his peers over the past half-decade told us 4 themes he's betting on and 4 he's betting against — and why the latest market rally still has room to run</a><a href="https://markets.businessinsider.com/news/stocks/hertz-stock-price-sell-new-shares-bankruptcy-market-risk-2020-6-1029304796">Hertz spikes 68% after revealing plan to sell up to $1 billion in stock that could 'ultimately be worthless'</a><a href="https://markets.businessinsider.com/news/stocks/morgan-stanley-charles-schwab-stock-good-buys-former-citigroup-ceo-2020-6-1029304460">Former Citigroup CEO touts Morgan Stanley, Charles Schwab as 'really very good buys' for a financial-sector rebound</a>

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