UBS Tells Rich Clients to Leave Stock Bubbles to Day Traders
- Retail traders are fueling a rally in lesser known companies
- Charles Day recommends clients hold large-cap growth stocks
A pedestrian passes the the New York Stock Exchange (NYSE).
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
The world’s largest wealth manager has a message for any clients tempted to follow day traders into some of the equity market’s more exotic stocks in search of a fast buck: don’t even go there.
With little-known companies from Fangdd Network Group Inc. to Nikola Corp. having seen their stock prices surge manyfold -- sometimes in a matter of just days or hours -- during the recent market rally, UBS Global Wealth Management’s Charles Day says rich clients should stick to safer names.