Nvidia is now 16% of U.S. GDP. The bubble could get bigger.

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Traders betting against runaway US stocks are blaming indiscriminate retail investors for their worst year of returns in half a decade.

A basket of the 250 US stocks most popular with short sellers has surged 57 per cent this year, hurting the traders betting on those shares’ decline, according to calculations by data group S3 Partners.

“Like all corrections these days, the manifestation of risk is really just an opportunity to BTFD [buy the fucking dip],” said Block.

Prominent short sellers, including Hindenburg’s Nate Anderson and Jim Chanos, who bet against Enron before its collapse in 2001, have thrown in the towel in recent years as US equity markets have marched relentlessly higher thanks in part to the growth of passive investment funds, which buy entire indices indiscriminately.

https://www.ft.com/content/094ebfb0-bbd8-42c4-9e93-0116d1f896de