Stocks typically take the escalator up and elevator down. However, over the past three months, it seemed the most popular retail stocks were taking the express elevator to the top floor (in part thanks to a record surge in call buying among a certain group of reddit "investors").
As a result, just this weekend we observed that in this "bizarro market", retail investors had managed to outperform hedge funds YTD, a divergence which we said we "doubt divergence will last long".
We didn't have long to wait, and with stocks now skipping the elevator altogether and going the gravitational freefall route and crashing back to earth with the Dow entering the fastest correction from an all time high since just months before the Great Depression...
... the Goldman Sachs Retail Favorite basket, after returning more than 16% YTD just last week, is now down for the year (curiously, it is still outperforming the GS Hedge Fund VIP basket which as of this morning is down more than 3% in 2020.)
And while we pointed out that retail momo darling Tesla has gotten crushed, it's just one of the 50 or so retail favorite stocks that make up the Goldman basket. So for those wondering which stocks they should short if this is indeed the long-awaited retail capitulation, the answer is below: these are all the 50 stocks that make up the Goldman Retail Favorites list.
Meanwhile, a quick look at the r/wallstreetbets forum on reddit, where the world's biggest momentum chasers have now gathered (even making it to Bloomberg in the process), and where a lot of millennials got very rich, very fast, well... they are probably not quite as rich any more.