10 stocks retail investors will love in 2024

Retail investors enjoyed another great year by sticking with tried-and-true big tech names that delivered big profits and promised progress in artificial intelligence.

Vanda Research It is estimated that the year will end with approximately $265 billion in net new inflows into US markets from self-directed retail investors. While this is $25 billion below the average of the previous three years, based on Vanda Research data, it is still within the post-Covid-19 range — indicating a healthy appetite for the average investor to engage with the markets.

The six corporate indices that received the most retail investor inflows were among the most notable tech momentum trades: AMD (AMD), nVidia (NVDA), apple (Apple), palantir (Belter), Tesla (TSLA), Amazon (Amzn). These five names attracted $67.7 billion in total retail flows this year. Nvidia has overtaken Tesla as the most popular stock among retail investors, at least judging by inflows.

Nvidia took in $29.8 billion in net retail flows this year, according to Vanda Research findings, up from $11.4 billion last year. Tesla’s retail flows fell to $14.7 billion from $48 billion in 2023.

However, Tesla still overtakes Nvidia as the largest holding in retail investors’ portfolios, accounting for an average portfolio weight of 10.58% compared to 10.33% for Nvidia.

The other four big indices were index-based trades that leveraged popular topics like artificial intelligence: Direxion Daily Semiconductor Bull 3X Shares (Soxl), Invesco QQQ Trust (QQQ), ProShares UltraPro QQQ (TQQQ), and the S&P 500 SPDR (spy).

“2024 has been an eventful year for markets,” said Marco Iachini, Vice President of Vanda Research. “For the average retail investor, this has been another great year of portfolio performance. Loyalty to technology names has paid off.”

In fact, loyalty to technology has paid off.

Vanda Research estimates that the average retail portfolio is up 40.74% this year, the second-highest performance since 2014. Only 2023’s performance of 41.94% has been better over this 10-year time period.

On a flow-adjusted basis, Vanda Research noted that this would be the second time retail investors have beaten the S&P 500 (^ GSBC) in consecutive calendar years and the first time since 2014 that the non-institutional crowd beat the Nasdaq Composite (^ IX).

Whether feel-good times for retail investors will continue in 2025 is anyone’s guess.

On the positive side, the incoming Trump administration has promised business-friendly policies e.g Reducing government spending through Elon Musk’s Department of Government Efficiency (DOGE) and extending tax cuts.

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“I’m not saying it’s going to be perfect, but I’m saying the odds are great that we’ll do very well over the next few years.” Joe MogliaThe former TD Ameritrade CEO said on Yahoo Finance Open the bid Podcast (listen below).

But markets are preparing to enter January despite Trump’s potential pro-growth policies, as the outlook for Fed policy becomes clear. Increasingly uncertain.

The consensus among Fed officials is Now to cut interest rates twice next year After meeting in December, down from four previous forecasts in September, as the monetary policy body remains concerned about inflationary expectations. Inflation expectations are more uncertain due to potential moves by the incoming Trump administration, e.g And perhaps inflationary tariffs on China.

In a new interview about Yahoo Finance’s inaugural presentationSan Francisco Federal Reserve Bank President Mary Daly did not rule out a possible interest rate hike.

The S&P 500 and Dow Jones Industrial Average fell 2% and 5%, respectively, in December. The Nasdaq Composite rose 1.4%.

Market leader Nvidia fell 1% in December.

“The stock market in 2025 is likely to be volatile, but there are significant opportunities in individual stock picks, especially in sectors like electric vehicles, artificial intelligence, healthcare, and quantum computing,” said MarketGauge chief strategist. Michelle Schneider He told Yahoo Finance. “Tax cuts and deregulation could stimulate growth, although tariffs and inflation remain risks. It may start the year under pressure but pick up towards the middle and end of the year with modest gains, with the stagflationary environment persisting until mid-2026.” “

None of Schneider’s top stock picks for 2025 would qualify as a typical favorite for retail investors: AbbVie (ABBV), Kratos (someone), International Business Machines (IBM), sales force (Customer relationship management), Coinbase (currency), rubber (He blows), Ulta Beauty (Ulta), Alibaba (Daddy), and Rivian (Raven).

But hey, maybe they’ll get some retail investor interest.

Brian Susie He is the executive editor of Yahoo Finance. Follow Sozzi on X @Brian Susie And on LinkedIn. Advice on deals, mergers, activist positions, or anything else? Email [email protected].

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