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With GameStop shares sharply lower for a second straight day, one portfolio manager says the short squeeze game is running out of steam.

UBS managing director and senior portfolio manager Jason Katz told FOX Business’ Stuart Varney on “Varney & Co.” Tuesday that the “Big Short 2.0 is fading” but retail investors still “have a seat at the table.”

Katz’ comments come on the heels of the CME announcing Monday that it will raise silver trading margins after the metal posted its biggest one-day percentage gain since March 2009.

“And clearly, the bloom is to some extent coming off the rose, as evidenced by how the silver shorts didn’t get steamrolled here. The Big Short 2.0 is fading. But look, retail investors, I think, have a seat at the table. There’s no two ways about it. Information is commoditized. The ability to act on it is very inexpensive, if not for free. And social media enables people to, in some cases, act first and think second. But look, this constituency is better informed than they’ve ever been. But the market’s very well informed. Regardless if it’s an individual or a professional, the collective wisdom of the market sniffs out inefficiencies and eventually we get a recalibration. And that’s what we’re seeing today.

A lot of this noise around what’s happened with silver and the short squeeze, it’s taking away from the big picture, and that is No. 1. We have to have this vaccine roll out successfully. That’s one of my four musts. Two, the economy eventually has to reopen without it reopening. This is all for naught. And then three, all this pent up demand that we’ve all been counting on, that analysts and economists have been forecasting, it has to come to pass. And then lastly, earnings need to grow into valuations. At 23 times earnings, valuations are arguably full and fair. So earnings need to grow into them. But thus far north of 50, 60% of companies who reported, 80% of which this quarter have beat earnings by nearly a 20% beat. So I do have a high degree of confidence in the latter part of this year, we’re going to see a major uptick in GDP, a major surge in earnings, and I think the vast majority of the earnings we will enjoy this year will be a second-half 2021 event.”