Investor Dan Niles says Fed tapering could make meme stocks 'dangerous on the downside'

The AMC Empire 25 off Times Square is open as New York City's cinemas reopen for the first time in a year following the coronavirus shutdown, on March 5, 2021.
Angela Weiss | AFP | Getty Images

The eye-popping trading in meme stocks like AMC Entertainment will come to an end once the Federal Reserve begins tapering back its bond purchases, hedge fund manager Dan Niles told CNBC on Friday.

"When we get to the point, and I think we will by late this year, when the Fed starts to take away the easy money ... that's when things start to get dangerous on the downside," Niles, founder of the Satori Fund, told "Tech Check."

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