Rise of the Retail Investor

In this episode of "The Markets," Chris Hussey interviews John Marshall, head of derivatives research for Goldman Sachs Research, about the impact of retail investors on current markets. Marshall explains how Goldman Sachs tracks retail activity across ETFs, single stocks, options, and mutual funds, noting significant inflows into ETFs and single stocks, particularly in NASDAQ 100 and AI-themed investments. He highlights that retail activity is generally a trend to follow rather than fade, and discusses the high volume of short-term options trading, especially around earnings season, which has led to significant single-stock price movements. Marshall concludes by advising against picking a top based solely on retail activity and suggests option-selling strategies, particularly for bondholders seeking higher yields, as a way to monetize elevated option prices.