IT IS I DO WANT TO BRING IN OUR
NEXT GUEST JOHN TRAINER CHIEF
INVESTMENT OFFICER AT PEOPLE'S
UNITED ADVISORS.
I'M JOHN IT'S GOOD TO SEE THIS
MORNING SO EXPLAIN WHAT'S
HAPPENING BECAUSE EVEN
NOW WE'VE ONLY HAD SEVERAL
TRAIN DAYS THIS WEEK, I MEAN 5
YOU CAN SORT OF START TO SEE A
PATTERN FOR MEAN
HE'S HEAVILY SHORTED STOCKS
RISE ON THE OVERALL US MAJOR
INDEXES FALL EXPLAIN WHAT'S
HAPPENING.
>> I'LL TELL YOU THE BEST YEARS
ARE GETTING AN EDUCATION THAT
LEVERAGED HEDGE FUNDS UNSURE
AND THERE I KNOW FOR FOR THE
CLIENTS THAT I
WORK WITH.
>> THIS THIS IS VERY VERY YOU
KNOW WAS RESEARCH LAST NIGHT ON
UPTICK RULE.
YOU KNOW I THINK YOU KNOW WE'RE
GOING TO HAVE SOME REGULATORS
AND
SO CONGRESS PEOPLE WOULD TAKE A
LOOK AT SOME OF THE CHANGES
THAT WERE MADE A FEW YEARS AGO
AND GO BACK IN AND TAKE A LOOK
AND SAY OK HAVE WE BUILT IN
ALRIGHT CIRCUIT BREAKERS BUT
WHAT YOU'RE SEEING IS A REAL
BATTLE BETWEEN
THE SHORTS AND YOU KNOW THE
RED INVESTORS HAVE BEEN BUYING
THE STOCKS AND TRY TO SCORE USE
THE SHORTS.
AND IT'S A BATTLE THAT AS YOU
JUST SAID IS CONTINUING THIS
MORE I'M I'M I'M
I'M AMAZED. BUT SOME OF THE
RISE IS THAT WE'RE SEEING IN
THE STOCKS HERE THIS MORNING.
IT IS INCREDIBLE, BUT IT'S A
REAL BATTLE GOING ON WITH VERY
LEVERAGED INVESTORS.
>> ARE YOU TRADING IN ANY OF
THE STOCKS.
>> YOU KNOW I WE RUN A LITTLE
OVER A 9 AND A HALF
BILLION DOLLAR OR SO WE DO HAVE
A FEW DO ON THAT GAME STOCK
THEY WERE
IN IT. IT IS SORT OF
FUNDAMENTAL INVESTORS THAT IT
OVER FOR QUITE A THIS IS NOT
THE KIND KIND OF INVESTING THAT
WE
WOULD GET INVOLVED WITH BUT YOU
KNOW I HAVE TO KEEP AN EYE ON
ALL OF OUR BUILDINGS AND WE DO
HAVE A FEW THE START.
>> SO WHAT'S THE POTENTIAL
CONTAGION
EFFECT HERE AND HOW DO YOU
THINK THIS DOES IMPACT OVERALL
MARKET SENTIMENT BECAUSE
WHETHER OR NOT YOU'RE TRADING
IN GAMESTOP IF YOU HAVE MONEY
IN A 4 O ONE K.
YOU WANT ANSWERS AS TO HOW THIS
IS IMPACTING SOME OF YOUR
CHOICES IN YOUR INVESTMENTS,
WHAT CAN YOU TELL US.
>> YOU JUST HIT THE NAIL ON THE
HEAD AND THE SITE CONTAGION
EFFECT THERE THAT WE'RE MOST
INVESTORS CONCERNED ABOUT
BECAUSE AGAIN WE'RE RUNNING
MONEY FOR LOTS OF LONG-TERM OF
US, THERE'S INDIVIDUALS
INSTITUTION'S ENDOWMENT.
AND IF
THEY START TO VIEW THE MARKET
AS LESS OF A BIT BESTING
VEHICLE AND MORE AS A CASINO
THAT THAT HURTS US ALL SO A LOT
OF WHAT WE'RE DOING WE'VE GOT
OUR INVESTMENT CALL THIS
MORNING AT 9 O'CLOCK YOU'VE GOT
TO HAVE ALL THE PORTFOLIO
MANAGERS GET ON THE PHONE.
TALK TO THEIR CLIENTS EXPLAINED
ABOUT WHAT'S GOING ON AND
SAY LOOK THIS IS THIS IS A YOU
KNOW A SIDE PART OF THE MARKET
EXISTS. IT'S ALWAYS BEEN OUT
THERE YOU'RE JUST SEEING IT
NOW. BUT WHAT YOU NEED TO DO IS
FOCUS ON INVESTING FOR THE LONG
TERM SO
THAT CONTAGION EFFECT IS MY
BIGGEST FEAR THAT IT SCARES A
LOT OF PEOPLE JUST OUT OF THE
FINANCIAL MARKETS WHICH I THINK
WOULD BE BAD.
>> HOW DOES THIS PLAY OUT JOHN,
I MEAN THE TRICKY THING WITH
THIS RED IT IS WE DON'T KNOW
WHO IS BEHIND THESE
USER NAMES COULD BE
INSTITUTIONS THAT COULD BE DAY
TRADERS OBVIOUSLY PEOPLE WHO
ARE ADVOCATING HOLD THE LINE
COULD BE FOREIGN ENTITIES BEING
WE DON'T KNOW HOW DOES THIS
END.
>> WELL I THINK YOU'RE IT LEAD
TO WAYS YOU'RE GOING TO SEE YOU
KNOW AGAIN,
YOU KNOW UNFORTUNATELY YOU'RE
PROBABLY GOING TO SEE SOME OF
SOME OF THESE PEOPLE THAT HAVE
MADE QUITE
A BIT. HOPEFULLY THEY TAKE
THEIR PROFITS AND MOVE ON BUT
YOU'RE GOING TO SEE A LOT OF
PEOPLE WITH SOME LOSSES WE SAW
SOME SOME HEDGE FUNDS REPORT,
MASSIVE LOSSES YESTERDAY.
YOU KNOW AND THEY'RE INVESTING
MONEY FOR A LOT
OF INDIVIDUALS PASTORS AND
INSTITUTIONS SO YOU KNOW THERE
ARE PEOPLE ON BOTH SIDES OF THE
STRAIT THAT ARE MAKING MONEY
AND LOSING MONEY. THE LOSERS
ARE GOING TO BE VERY VERY UPSET
AND THEY'RE PROBABLY GOING TO
LOOK FOR SOMEBODY TO BLAME.
YEAH, IF YOU COULD GO AHEAD
SIR.
>> I WAS GOING TO SAY THE
BIGGEST OUTSTANDING QUESTION AS
WE DO ANTICIPATE FINGERPOINTING
SOME OF
THAT IS ALREADY BEGUN OBVIOUSLY
INVESTIGATIONS HAPPENING IN
WASHINGTON AND AROUND THIS
COUNTRY. BUT THE BIG QUESTION I
THAT
I HAD IS HOW DOES THIS IMPACT
LONG-TERM INVESTMENTS, I KNOW
WE TALKED ABOUT THE SENTIMENT.
HOW IMPORTANT
THAT IS BUT WE DO KNOW THAT
RETAIL TRADERS HAVE ENTERED
THIS MARKET LIKE THEY'VE NEVER
BEEN PRESENT AND AT LEAST
BEFORE SINCE THE FINANCIAL
CRISIS AND THERE STILL IS A LOT
OF MONEY ON THE SIDELINES.
SO LONG-TERM DOES THIS CHANGE
THE GAME.
>> I THINK WHAT YOU'RE GOING TO
SEE OR A LOT OF RETAIL
INVESTORS SAY OR MISS THAT LET
ME GET IN ON THE
NEXT ONE. SO YOU'RE PROBABLY
GOING TO SEE YOU KNOW MORE OF
THIS I DON'T THINK IT'S GOING
TO I DON'T THINK IT'S GOING TO
EBB AWAY ANYTIME SOON. WHAT I
WHAT I I GUESS I'M MOST NERVOUS
ABOUT IS THAT YOU'RE GOING TO
SEE PRESSURE ON POLITICIANS YOU
SAW YOU KNOW SO MUCH TWEETS
GOING BACK AND FORTH SEE AND
TED CRUZ. THAT WE'RE WE'RE ON
THE SAME SIDE OF
THE ISSUE. I I WOULD I WOULD
HOPE THAT WE'RE NOT GOING TO
SEE SOME REGULATIONS THAT COME
IN THAT CHANGE THE THE
INVESTING INVESTING
DRAMATICALLY THAT IMPACTS THE
REAL INVESTORS YOU'VE GOT
TRADERS RIGHT NOW THEY'RE GOING
TO TRADE. IT'S DO WE IMPACT THE
REAL INVESTORS THAT'S WHAT I
WOULD BE NERVOUS ABOUT BUT YOU
GOTTA TRIMET AS YOU JUST SAID
YOU'VE GOT A TREMENDOUS AMOUNT
OF LIQUIDITY. I THINK THIS IS
GOING TO CONTINUE.
>> SO I GUESS THE
BIGGEST OUTSTANDING QUESTION
FOR TRADE TODAY IS WHAT DOES
LIMITED BUYING MEAN RIGHT AND
COULD SAY THAT IT IS GOING TO
OPEN AS SOME OF THESE 13 STOCKS
TOO LIMITED BUYING TODAY AFTER
IT DECIDED TO TAKE THE MOVE
YESTERDAY ONLY ALLOW SELLING AT
A CERTAIN POINT
BECAUSE OF POTENTIAL LIQUIDITY
ISSUES AT THAT PARTICULAR
PLATFORM DOWN
THE ROAD. ANY IDEA WHAT LIMITED
MEANS AND WHO WOULD GET
PREFERENTIAL TREATMENT AND THAT
SORT OF SCENARIO IS IT THE BIG
MONEY HEDGE FUNDS. HOW DID THEY
DETERMINE THAT.
>> YOU KNOW I I I DON'T WANT
TO SPEAK ROBIN BECAUSE I
DON'T KNOW EXACTLY HOW THEY'RE
GOING TO DETERMINE THAT BUT YOU
KNOW CHANCES
ARE YOU SEE THE BIG BOYS THE
COUNTRY, YOU IN A LOT OF
DIFFERENT YOU'RE GOING TO SEE
THEM BE ABLE TO TREAT. OF A LOT
OF THE RETAIL INVESTOR AND I
DON'T BELIEVE A LOT OF RETAIL
INVESTORS
ON THROUGH STAN, ALL OF THE
DIFFERENT MECHANISMS THAT THE
HEDGE FUND INVESTORS HAVE
AVAILABLE TO THEM TO TRADE
YOU KNOW I I WOULD WANT TO
SPEAK OR ROBIN HOOD, I'M SURE
THERE THEY'RE SCRAMBLING RIGHT
NOW. SO WHY THEY THEY'VE GOT
THEIR HANDS FULL.
>> AND OF COURSE OBVIOUSLY
CAUTIOUS WARNINGS