One of Wall Street's biggest short sellers, James Chanos, said the recent wave of private-equity deals and speculation about buyouts is helping to prop up stocks prices.
“Investors forget that merger booms are coincident with the market," Chanos told Sue Herera on "Power Lunch." "They don’t happen at market bottoms, they happen at market tops.”
When asked about the abundance of cheap credit fueling the merger boom, Chanos said that equities are long-duration assets and that to look at short-term interest rates alone is “missing the point.”