What does it mean for stocks now that professionals take control from retailers

“The big reopening trade” is being driven by investment professionals, to the detriment of retailers who became interested in the stock market during this year’s “WallStreetBets revolution,” CNBC’s “Crazy Earnings” host Jim Cramer said Friday.

“Money managers have taken control of the market. And they don’t want to pay 100 times their sales; they prefer to pay 10 times their earnings,” Cramer told Squawk on the Street, noting that professionals have been avoiding large flyers with high ratings in favor of less bright names related to the relaxation of Covid business mitigation restrictions.

The daily transaction of the 1990s – which returned earlier this year, exemplified by the GameStop frenzy – has led to an increase in the volume of transactions in recent months. But the volume is now starting to recede, as CNBC’s Bob Bob Pisani noted this week, raising questions about whether retail investors are throwing in the towel.