BTIG’s Julian Emanuel believes the Reddit frenzy will play a major role in a deep market sell-off this summer.
On CNBC’s “Trading Nation” on Monday, Emanuel compared the current backdrop to late January when the mania was firing on all cylinders. Weeks later, wild swings pressured the major indexes as retail investors took profits.
“We all know the video game retailer [GameStop] really leading the charge at that time,” Emanuel, BTIG’s chief equity and derivatives strategist, said. “Essentially, it precipitated a month or two of sort of violently sideways to lower activity in the broad market as speculation came off.”
This time, according to Emanuel, the fallout could be more serious. If…