JPMorgan: Retail investors are flooding into the stock market at a frenzied pace.

JPMorgan noted that retail investors were rushing into the stock market at a feverish pace, reminiscent of the meme stock frenzy that was sparked by GameStop (GME) in early 2021. At present, retail investors account for 25% of trading in the US stock market, more than double the level before the pandemic five years ago, and close to the peak in early 2021. The retail investors' enthusiasm is believed to be linked to continued support for former US president Donald Trump and expectations that he will bring a more favourable regulatory environment for companies, stocks, and cryptocurrencies. Many of the once-popular meme stocks have rebounded, such as BlackBerry, whose shares have risen 55% this year despite its poor financial condition. Other retail favourites such as Palantir Technologies and MicroStrategy have also seen significant gains. JPMorgan said there were signs of a bubble in the US market and urged investors to be cautious.