Mobius Says Regulators Shouldn’t Act Against Reddit Traders
(Bloomberg) -- As authorities in the U.S. take a closer look at stock-market activity amid the Reddit-fueled surge in GameStop Corp., veteran investor Mark Mobius says he isn’t in favor of regulatory action against retail traders.
“There definitely should not be any regulatory action,” Mobius said in an email interview. “The regulator should only ensure that trading is done efficiently and fairly with all buyers and sellers (regardless of their objectives) treated equally.”
The U.S. Securities and Exchange Commission has said it is “actively monitoring” volatility in options and equities markets amid a surge in GameStop and other companies over the past week that prompted Democratic Senator Elizabeth Warren to demand action from regulators.
“We have not made any changes in our portfolio” based on retail flows, Mobius said.
GameStop plunged 44% Thursday, snapping a dizzying five-day rally, after several brokerages took steps to curtail activity in retail favorite stocks including the video-game retailer and AMC Entertainment Holdings Inc. However, the stock jumped in extended trading as Robinhood Markets said it plans to allow limited buying of certain securities that it had blocked.
The WallStreetBets forum is “by no means perfect but they’ve been well in the bounds of our content policy,” Reddit Inc. Chief Executive Officer Steve Huffman said on Thursday. He called the forum’s outsized influence on GameStop’s stock a “culture war of Wall Street versus everybody else.”
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