As Stock Markets Set News Records, Hedge-Fund Managers Aren't Buying the Frenzy
- Nasdaq 100 in epic run with traders flocking to Tesla, options
- Shorts backfire as bears burned by Avis, Bed Bath & Beyond
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The $4 trillion boom lifting equities for a month has been a YOLO feast, complete with spiraling meme stocks and surging options. For a slightly more staid group, hedge-fund managers, the frenzy has begun to sow skepticism.
The result is a market of contrasts, in which a virtually uninterrupted march higher in the major indexes has pushed volume in the day trader flier-of-choice, bullish call contracts, to some of the highest levels in history. Meanwhile, professional speculators -- many of them stung by upheaval in bond markets -- were going risk-off in stocks, cutting leverage at the fastest pace in months as many bearish bets backfired.