Reddit frenzy: Billionaire Mark Cuban says his 11-year-old son made money with WallStreetBets traders — and he ‘loves’ what’s going on with the forum

Cuban’s tweet gathered some criticism from followers for not addressing the need for regulation to control the current market dynamic, while others encouraged him to teach his kid to become a responsible investor.

But piling into previously unloved stocks is unlikely to turn out to be a good thing for most retail investors, a CEO of one of the largest independent financial advisory firms warned.

“The valuations can be expected to be extremely wild – in both directions – and there’s a legitimate risk that investors could get burned,” said Nigel Green, CEO of deVere Group, adding he would avoid being drawn into the hysteria of social-media led stock frenzies.

“Micro-bubble spotting, and diversification across asset class, sector, region and even currency, should become a priority for investors right now,” he said.

The US SEC said on Wednesday it was actively monitoring ongoing market activity given the surge in GameStop and other companies’ shares over the past week, indicating how the frenzy grabbed the attention of Wall Street and Washington.

“There is a sense that professional investors are unhappy another group has come along and forcibly joined in with a game they see as theirs and theirs alone, none too pleased that certain elements of the whole enterprise have been shown up as farcical,” said Connor Campbell, a financial analyst at SpreadEx.

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