James Chanos at the 2019 Providing Alpa meeting in New York on Sept. 19. 2019.
Adam Jeffery | CNBC
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Brief vendor Jim Chanos warned investors about piling into “virus stocks” benefiting from the coronavirus lockdown.
“One particular area I would alert folks about for case in point is the virus shares,” Chanos claimed on Thursday on CNBC’s Halftime Report. They are “performing well ideal now in this enforced lockdown. A great deal of these providers are actually not structurally advancement shares that are buying and selling at 30, 40, 50 times earnings for the reason that they are likely to do nicely in the initial and second quarters of 2020.”
The founder of Kynikos Associates shown Zoom Video clip, Peloton and Clorox as businesses finding a enhance from the remain-at-property development amid the coronavirus pandemic.
“Of course when the virus subsides and we all know it will, individuals providers will possibly get started to not seem as desirable going forward,” Chanos claimed. “I would convey to your viewers to be extremely, extremely careful about just piling into issues that are performing properly simply because folks are inside and will remain within for the upcoming three, 4, five weeks.”
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