Josh Brown Unveils The 'Degen Dow,' A Basket Of 30 Retail Darlings Spanning All 'Major Degen Food Groups'

Ritholtz Wealth Management’s Josh Brown created a new index that tracks the most popular stocks in some of the hottest themes of the market.

What To Know: Last Tuesday on "The Compound & Friends" podcast, Brown set the stage for unveiling the “Degen Dow.”

“I think that if we were to make a list of the biggest themes of 2024, one of those themes would have been degeneracy,” Brown said.

It’s tough to say precisely how the word “degen” came to be, but some believe it originates from the term “degenerate gambler” in sports betting and gambling culture, according to The Wall Street Journal.

It’s also used by crypto traders and meme-stock traders who often make risky short-term bets based on momentum and steer clear of traditional ways of assessing investments.

Brown put together a list of the top stocks used as trading vehicles by “degen” traders using platforms such as Robinhood, Stocktwits and Reddit’s WallStreetBets. The list includes high beta Bitcoin BTC/USD-related names, gaming and gambling companies, AI names, space theme plays, Cathie Wood favorites and president-elect Donald Trump-related stocks.

“All the major degen food groups are represented,” Brown said.

Here’s a look at all of the stocks that made it into the “Degen Dow.”

• Archer Aviation Inc ACHR

• AMC Entertainment Holdings Inc AMC

• Applovin Corp APP

• Coinbase Global Inc COIN

• Carvana Co CVNA

• Trump Media & Technology Group Corp DJT

• DraftKings Inc DKNG

• Flutter Entertainment Plc FLUT

• Geo Group Inc GEO

• GameStop Corp GME

• Hims & Hers Health, Inc HIMS

• Robinhood Markets, Inc HOOD

• Lucid Group, Inc LCID

• MARA Holdings, Inc MARA

• MicroStrategy Inc MSTR

• NVIDIA Corp NVDA

• PagerDuty, Inc PD

• Palantir Technologies Inc PLTR

• Roblox Corp RBLX

• Reddit, Inc RDDT

• Riot Platforms, Inc RIOT

• Rivian Automotive, Inc RIVN

• Rocket Lab USA, Inc RKLB

• Rumble Inc RUM

• Super Micro Computer Inc SMCI

• SoFi Technologies, Inc SOFI

• SoundHound AI, Inc SOUN

• Tesla, Inc TSLA

• Unity Software Inc U

• Vistra Corp VST

Why It Matters: Brown equal-weighted the basket of stocks in the index to track performance. The index actually declined more than 80% from the highs in late 2021, but it has formed a base and appears to be breaking out to the upside with gains of nearly 50% since the start of the year.

“Look how it’s like turning up … this thing is ripping into year-end,” Brown said, to which his co-host Michael Batnick replied, “I want to get long.”

Brown noted Nvidia and Reddit are the only two names on the list he currently owns.

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