Retail investors outperformed institutional investors for two consecutive months, with a record excess return of 16 percentage points in May

Odaily Planet Daily News: The Kobeissi Letter posted on X platform that in May, the stock portfolio favored by retail investors outperformed the stock portfolio favored by mutual funds by 16 percentage points, the largest single-month gap since data became available in 2018. This retail-favored stock portfolio includes large-cap tech stocks, including the "Magnificent 7" and semiconductor stocks. Previously, in April, retail investors had already achieved an excess return of 14 percentage points. The two consecutive months combined set a record for the largest gap in history, surpassing the previous record of 13 percentage points set at the beginning of the meme stock frenzy in late 2020. During the same period, the total amount of funds retail investors used for semiconductor option contracts reached 4.9 times the historical monthly average, setting a new all-time high, approximately 25% higher than the previous record set in March 2024.