Business Insider·2025-11-21 12:48Core Insights - 2025 has been a record year for retail traders, with activity up 50% compared to the previous year, indicating increased volatility [1] Group 1: Investment Trends - Dip-Buying Bonanza: Three major dip-buying events occurred in the first four months of 2025, with 75% of current stock-market positioning happening during this period, benefiting Nvidia and Tesla [2] - ETFs Dominating: ETFs accounted for 75% of retail-trader inflows in 2025, with a notable shift from single-stock buying to ETFs and options after February to April volatility [4] - AI Stock Purchases: Retail traders are selling off broader market stocks, referred to as the "SPX 470," to finance purchases of the top 30 AI stocks, leading to increased concentration in mega-cap tech names [6] Group 2: Market Dynamics - Recent Retail Investor Behavior: Retail investors have shown less enthusiasm for dip-buying recently, opting to stay on the sidelines during market weakness, with day traders becoming net sellers due to valuation concerns [3] - Interest in Gold ETFs: The SPDR Gold Shares ETF has attracted significant retail interest, coinciding with a more-than-60% surge in gold prices year-to-date [5] - Potential Exhaustion of AI Trade: There are concerns that the AI trade may be reaching exhaustion, which could lead to a shift in dynamics, especially with renewed valuation concerns despite strong earnings from Nvidia [7]