Trump enthusiasm matches GameStop mania as small investors flood market in record numbers

Core Insights - Retail investors are trading stocks at levels not seen since the meme stock mania of early 2021, with their share in U.S. stock trading reaching 25%, more than double pre-pandemic levels [2][3] Group 1: Retail Investor Behavior - The "buy the dip" mentality among retail investors is at an all-time high, driven by confidence from past successes in the bull market [4] - Retail investors have been actively purchasing stocks since before the U.S. presidential election, influenced by expectations of a favorable regulatory environment under President Trump [3][4] - Retail favorites such as Palantir, AMC Entertainment, and BlackBerry have seen significant stock price increases, with Palantir up more than 50.5%, AMC up more than 13.5%, and BlackBerry up about 34% [10] Group 2: Market Dynamics - The S&P 500 has shown resilience, recovering from declines caused by external factors, such as concerns over an AI bubble and tariff announcements [5] - Retail investors have played a significant role in supporting the broader U.S. equity market, particularly in the latter half of 2024 [7] - There are signs of market froth, with a notable disparity between expensive stocks and those with reasonable valuations, indicating potential challenges ahead for retail investors [9]