Market Sentiment & Retail Investor Activity - Emerging signs of market froth are observed, including the comeback of SPACs and a strong return of retail investors [2] - Post "Liberation Day", retail investors bought approximately $34 billion into US equities [2] - Retail investor presence in the option markets has returned strongly [2] - Barclays' euphoria indicator, tracking over a thousand stocks and their option markets, is at levels comparable to the meme stock frenzy and the dot-com era, signaling retail investors chasing upside [3][4] Market Focus & Potential Risks - The current euphoric sentiment is more limited to specific market segments like crypto and some AI growth stories [6] - Single stock names like Nvidia, Tesla, and MicroStrategy have gained significant popularity, especially among retail investors, offering leverage [6][7] - These leveraged products can lead to convex moves on the downside if conditions worsen [8] Trading Strategies & Risk Management - Trading bubbles is difficult to time and can be risky [8] - Utilizing options can help navigate markets in the current environment [9] - Options can be used to ride the wave while limiting downside risk, or to bet against "hot" stocks identified by the euphoria indicator [9]