U.S. retail investors have outperformed institutional investors for two consecutive months, with May's excess returns reaching a record 16 percentage points

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