⚠️Retail investors have never been more euphoric about US stocks

The current retail mania has largely exceeded the 2021 meme stock craziness

February 07, 2025

Retail investors purchased $12 billion in US equities over the last week and broke another record.

Notably, ~70% of these buying went to Magnificent 7 stocks, most to Tesla and NVIDIA.

As a result, mom-and-pop investors' sentiment spiked to the highest level on record and exceeded the sentiment seen during the meme stock mania in 2021 and record 2022 levels.

Individual investors have never been more bullish on stocks.

On the other hand, institutional investors have been selling over the last few weeks as highlighted in the previous articles.

As a reminder, the S&P 500 beat retail investors’ performance by a few percentage points in 2024.

Meanwhile, the Magnificent 7 stocks are on the brink of breaking key technical levels.

Will this be another relatively rough year for retail investors?

S&P 500 fell for the 2nd straight week amid tariff uncertainty. Weekly market recap, trading week 06/2025

Summary of the trading week using the most popular posts from the X platform

globalmarketsinvestor.beehiiv.com/p/s-and-p-500-fell-for-the-2nd-straight

⚠️CHART OF THE WEEK: Retail investors are buying NVIDIA stock like never before

Mom-and-pop investors bought a huge amount of NVIDIA stock this week despite the drop

globalmarketsinvestor.beehiiv.com/p/chart-of-the-week-retail-investors

🚨The average retail investor has materially underperformed the S&P 500 this year

The average retail investor's portfolio has been up 9.8% year-to-date

globalmarketsinvestor.beehiiv.com/p/the-average-retail-investor-has-materially

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