Strategist on meme stock resurgence: ‘This is a late-cycle dynamic’

Trading popular meme stocks such as Bed Bath & Beyond, GameStop, AMC, and Blackberry during their latest resurgence has a lot in common with putting a quarter in a slot machine, strategists warn.

“It’s speculation, absolutely,” Matt Miskin, John Hancock co-chief investment strategist, said on Yahoo Finance Live (video above) about the latest meme moves. “We want to find high-quality income for clients. That’s what we are honing in on instead of speculating in the gambling part of the markets.”

Miskin attributed the latest frenzied meme stock action to traders speculating on the path ahead of markets and Federal Reserve rate hikes.

“This is a late-cycle dynamic,” Miskin explained. “This is a sentiment indicator in our view. The fact that people are willing to throw capital around, trade like this, gamble like this — this is not usually something you see when the Fed is done raising rates. In our view, that means unfortunately the Fed will keep raising rates.”

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This article was written by and originally published on finance.yahoo.com