LOS ANGELES (AP) — For years, retail investors were dismissed by some on Wall Street as “dumb money.” That typically referred to those prone to trading on hype, or chasing trends rather than company or industry fundamentals, or responding late to big market moves. That's no longer the case. An analysis of where retail investors put their money last year shows they outperformed two of the most popular, professionally managed index funds, SPY and QQQ, whose goal is to mirror the performance of the S&P 500 ...

Gold looked unstoppable heading into late January, with the SPDR Gold Trust (NYSEARCA:GLD) climbing 74% over the prior year as retail investors piled in. ...

Core Viewpoint - Defiance ETFs and Futurum Equities have launched a new ETF targeting stocks that appeal to retail investors, reflecting the growing influence of this investor group in the U.S. stock market [1][8]. Group 1: ETF Details - The Defiance Retail Kings ETF (RKNG.O) will manage a portfolio of 30 to 50 stocks aimed at self-directed retail investors seeking high-growth and high-momentum opportunities [1][7]. - The ETF does not focus on meme stocks, which are known for their volatile trading patterns influenced by social media [2]. Group 2: Investment Focus - The ETF's initial portfolio includes companies such as Micron (MU.O), Palantir Technologies (PLTR.O), and Robinhood (HOOD.O), with a notable holding in Oklo (OKLO.N), which has seen a 170% increase in stock price over the past year due to rising demand for power linked to AI [4][3]. Group 3: Retail Investor Activity - Recent market activity highlights the increasing importance of retail investors, with $12.9 billion invested in U.S. stocks and funds in a single week, nearly double the 12-month average of $6.7 billion [5]. - On a particularly strong buying day, retail investors purchased $1.8 billion worth of stocks, marking the largest net purchases since October of the previous year [5].

Group 1 - Retail investors are showing cautious optimism as the year comes to a close, with a bullish sentiment despite concerns about market bubbles [1][2] - Expectations for returns over the next 6 to 12 months are realistic, with investors anticipating around 5% to 10% returns, indicating a grounded outlook [2] - There is a growing interest in event contracts and prediction markets among retail investors, reflecting a shift in investment mentality [3][4] Group 2 - Retail investors are primarily focused on large-cap stocks and are willing to invest additional funds into the stock market, particularly as interest rates decline [6][7] - The survey indicates a notable change in sentiment compared to earlier in the year, with previous concerns about policy uncertainty and tariffs affecting investor behavior [8]

Core Viewpoint - Billionaire investors are primarily focused on their own wealth and are unlikely to assist average investors in growing their capital [1][2][4] Group 1: Investor Behavior - Many billionaire hedge fund managers do not actively seek to help others appreciate their capital, with only a few exceptions [2] - Billionaires often create fear in the market, pressuring retail investors to sell their stocks rather than providing constructive advice [2][3] Group 2: Investment Strategy - Cramer emphasizes that retail investors should focus on the fundamentals of their investments rather than reacting to the fearmongering of billionaires [3][5] - The risk profiles of ultra-wealthy investors differ significantly from those of everyday investors, leading to a lack of shared investment ideas that could benefit the latter [4] Group 3: Advice for Retail Investors - Retail investors are encouraged to disregard alarmist signals from the bond market and instead concentrate on the fundamentals of their own stocks [6] - Cramer advises against following the negative narratives promoted by wealthy investors, advocating for a grounded approach to investment [5][6]

Market Trends - Retail investors are identified as the driving force behind the recent surge in gold prices [1] - Gold is shifting from its traditional role as a safe haven asset to a more speculative one [1]

Market Dynamics - South Korean retail investors purchased a record $31 billion (十亿) of US stocks this year [1] - These investors are being blamed for the country's weakening currency [1] - The investors are reportedly furious about this situation [1]

ETF Market Trends - Leveraged and inverse ETFs, while small relative to the overall ETF market, exhibit significant trading activity, raising questions about their potential impact on the options markets [2] - Retail investors and ETF issuers are increasingly engaging with risky leveraged and options-based ETFs, viewing them as "lottery tickets" with potential for high returns [7][8] - The industry anticipates a lifecycle for retail investors in these products, with initial enthusiasm potentially leading to negative experiences and a subsequent shift towards more traditional index funds [9][10] - Issuers will continue to launch these products, but some will thrive while others will fail, presenting closure risk [10][11] Correlation and Volatility - There's a notable increase in volatility within the risk-on/risk-off space, impacting crypto and other high-beta stocks, leading to conditional correlation where seemingly unrelated stocks trade in line during market weakness [3][4][5] - Correlation convergence is observed during periods of volatility, impacting the prices of options on sector-based ETFs [5][6] Crypto ETFs - Despite recent downside volatility, Bitcoin ETFs have experienced substantial growth, with Bitcoin up over 80% since the launch of spot Bitcoin ETFs in January 2024 [12][17] - Spot Bitcoin ETFs have seen outflows of approximately $45 billion over the past month, but year-to-date inflows remain significant at around $22 billion [18] - Spot Ether ETFs are down 40% since early October, but year-to-date inflows are about $10 billion [19] - Deleveraging in the crypto space is identified as a primary driver of recent weakness, exacerbated by broader equity market weakness and increased correlation among higher beta names [19][20] - Bitcoin price could test the $70,000 level, which represents the breakout point and the cost basis of strategies Bitcoin holdings, potentially finding support near the cash cost of mining [16]

Market Trends - Bitcoin whales 数量在三周内增长 2.2%，达到四个月来的最高水平 [1] - 小规模零售 BTC 投资者数量已降至年度最低点 [1]

Group 1 - Tesla shareholders are voting on Elon Musk's $1 trillion pay package, highlighting the significance of this decision for the company [1] - Approximately 41% of Tesla's stock available for trading is held by retail investors, which is notably higher than the average for other major companies [2] - In comparison, retail shareholders own an average of about 25% of shares for the other companies in the "Magnificent Seven" and roughly 5% for stocks in the S&P 500 [3]