Euphoria

Risks in the market keep piling up. To the concentration, we need to add leverage. Take a look at the top chart below: AUM for leveraged and inverse single stock ETFs have quadrupled since 2024 to $38Bn. On top of that, the whole leveraged ETF AUM (single stock and indices) has seen $115Bn of inflows over the last month, mostly in tech, and mostly in semiconductors. But the most staggering statistic on leverage is the following: the average stock holder is using 86% of her available marging at this point. This is reflected on the bottom chart below. This not All-in mentality. It goes beyond. This means euphoria. Greed at its finest. And it can go on for a while, until the music stops.

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