Retail trader euphoria is a warning, says Morgan Stanley’s Slimmon

Published On Feb 19, 2025, 6:01 PM

Morgan Stanley's Andrew Slimmon warns that the current wave of retail investor enthusiasm for speculative stocks could indicate an impending market downturn. He highlights that sentiment among individual investors is at a historic high, surpassing levels reached during previous market frenzies. While he acknowledges the surging interest in stocks like Palantir and ARK Innovation ETF, he advises caution, suggesting that such euphoria typically marks the end of a bull market and could lead to heightened volatility this year. Slimmon believes that a more balanced market would benefit broader sectors, particularly financials, as investors navigate these speculative trends.