The Compound and Friends Retail Investors Just Plowed $100 Billion Into Stocks. THIS MONTH.
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Oct 10, 2025 Scott Nations, an author and president of Nations Indexes, dives into the world of market bubbles and the recent surge of retail investing. The discussion reveals how $100 billion flowed into stocks, resurrecting meme stocks and speculative names. Scott explains the dynamics of volatility and options trading, emphasizing why retail investors often face losses with leveraged ETFs. He also critiques the Fed's policies, drawing parallels to past bubbles, and discusses the implications of emerging trends in private credit and the interesting interplay of gold and Bitcoin at record highs.
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Life In The Trading Pit
- Scott Nations recounts starting as a clerk in the Chicago trading pits in 1989 and learning the ropes firsthand.
- He emphasizes that the pit system provided a real career on-ramp that no longer exists today.
Markets Are Much More Efficient Today
- Markets are far more efficient now with immense liquidity and minimal market impact for large trades.
- That efficiency reduces some old opportunities but opens trading to anyone with superior skill or models.
Use Volatility Products Tactically
- Avoid buying long-term VIX or leveraged volatility ETFs as perpetual holdings due to roll costs and volatility crush.
- Use volatility products tactically around clear catalysts instead of as ongoing insurance.
