Speculative activity in U.S. equities has returned to levels last seen during the dot-com and pandemic booms, according to a new report from Goldman Sachs. The bank’s Speculative Trading Indicator has climbed to its highest reading on record, propelled by a surge in trading of unprofitable, penny and high price-to-sales companies. Call options now account for 61% of total option volume, while a basket of retail-favoured shares tracked by Goldman (GSXURFAV) has rallied 50% since early April. First-day returns on initial public offerings have also jumped, underscoring what the firm calls one of the sharpest increases in speculative behaviour ever recorded. Goldman analysts warned that such spikes have historically preceded periods of above-average gains followed by market drawdowns, posing a potential headwind for the S&P 500’s advance. Other gauges echo the froth: the Buffett Indicator, which measures U.S. market value against GDP, has hit a record 212%, and Bank of America’s Bull & Bear barometer has risen to 6.4, its highest since the November 2024 U.S. election. With volatility pricing subdued, Goldman’s trading desk is advising clients that put options on the S&P 500 offer unusually cheap protection against a 10% slide. Professional investors are weighing whether to ride the renewed “meme-stock” style rallies in small-capitalisation and heavily shorted names or treat them as a warning sign that leverage-fuelled speculation—from equities to cryptocurrencies—is becoming excessive.