"Over the last few years, the market has seen a number of trends that have led to huge market moves. Apart from AI, which is the main impetus to the jet fueled "Magnificent 7" tech stocks leading the S&P 500 and still going strong, some of the booms that became busts in the latter part of 2025 going into January 2026 are: ETFs with extreme leverage Ultra high yield ETFs using options for income"
"One of the biggest market upheavals of 2025 going into 2026 has been the huge bull run of gold and silver. At the time of this writing, In the past year, gold has risen over +70%, from $2,778 per oz. to $4,983, fast approaching $5,000. Silver has made an even bigger percentage move in the same period, from $31 to over $103 for a +230% rise."
"While there is nothing preventing any of these sectors from resurging again if the justifications are valid, the retail fervor that supplied the ammunition for them to defy naysayers had decidedly cooled starting in Q3 2025 and the redemption selloffs seemed to mirror their ascendancies. Although there are a few exceptions, the sectors, on a whole, have definitely rediscovered the laws of gravity."
AI-driven momentum concentrated in the Magnificent 7 tech stocks dominated the S&P 500 while several speculative booms peaked and then reversed between late 2025 and January 2026. Sectors that experienced frenzied retail participation included extreme-leverage ETFs, ultra-high-yield option-based ETFs, cryptocurrencies, and meme stocks. Retail enthusiasm cooled beginning in Q3 2025, and redemptions produced selloffs that reflected prior rapid gains. Representative ETFs such as DUST and MEME illustrate these sharp declines. A dramatic precious-metals rally occurred simultaneously, with gold rising about 70% and silver about 230% over the prior year.
Read at 24/7 Wall St.
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