Goldman Sachs charts out why the market is in such a frenzy
The dot-com bubble and meme stock frenzy of 2021 are the only times speculative fervor has held a tighter grip on the stock market than it does today, according to Goldman Sachs.
The headline number? The sharpest three-month rise in the bank’s “speculative trading indicator” outside of those two high-profile episodes.
As a share of total dollar trading volumes since 1990, we’re at the 98th percentile when it comes to penny stock trading and the 85th percentile when it comes to stocks of companies that are not profitable.
That’s supported by the “good vibes only” message from social media on the stock market, which is at levels not seen since the end of 2019. Check it out in this pretty remarkable chart.
Call options — often the instrument of choice for retail traders piling into a new stock — are dominating options activity, accounting for 61% of US options volumes.
Not only is the index inclusion pop back, but IPOs are enjoying strong starts relative to history: the median IPO return in its first day of trading is at 37%, well over the 30-year average of 9%.
The Takeaway
“The recent rise in speculative trading activity signals near-term upside risk for the broad equity market but also increases the risk of an eventual downturn,” Goldman concluded in its note. “During the last 35 years, other sharp increases in speculative trading activity have signaled above-average subsequent 3-, 6-, and 12-month S&P 500 returns, but returns typically faltered on a 24-month horizon.”
The cost of pets is getting too barking high
According to the American Pet Products Association, some 49 million households have a cat and a whopping 68 million households have a dog, but shelters across the country are reporting a surge in “owner surrenders” as the cost of keeping pets goes up.
Per the APPA, Americans are on track to drop $157 billion on their pets this year, 62% more than they spent in 2019. About 43% of that goes to people sustaining their pets day to day with food and treats, while the rest is spent on vet care, medicines, supplies, and more.
Though pet food costs are up more than 20% since the pandemic, it seems to be pet services like veterinary access and grooming that are breaking the bank: Bank of America analysis shows that pet services are 42% more expensive in 2025 than they were in 2019.
One animal shelter in North Carolina reported that owner surrenders are up 43% this year. Meanwhile, Ruff Start Rescue in Minnesota has seen applications rise 16%, and the Animal Care Centers of New York says it has reached a “breaking point,” suspending its intake entirely.
The Takeaway
It might sound barking mad, but given the emotional connection involved, any decision to surrender a pet is presumably never taken lightly — suggesting serious economic hardship is likely at play when so many Americans are making the difficult choice to give up their companions.