He says investors are “chasing momentum because it’s working.”
But that could have its pitfalls over the long term. In general, Mr. Chanos says the stock market has gotten “extremely speculative” at current levels. He compares it the tech bubble and says the current environment is “almost akin to the day-trading-like market that we had in the late 1990s.”
“We didn’t see any of that in March 2009,” he says. “People were too scared”.
He says this all explains how “pressure is rising and things are getting more speculative,” he says. “It’s time to be a little more careful than people were four years ago.”