According to Odaily Planet Daily, trading information platform Kobeissi Letter published an article on the X platform stating that US investor leverage has nearly doubled over the past two years, a similar rate of growth following the 2020 pandemic. In September, US investors took on an additional $67 billion in margin debt, bringing the total to a record $1.13 trillion. 5x leveraged ETFs for US stocks have just been submitted to the SEC. These ETFs will cover everything from Nvidia to cryptocurrencies. This means that if Nvidia drops 10% in a single day, the leveraged ETFs will drop 50%, making the upward trajectory of risky assets even more volatile. Risk appetite is at an all-time high, and everyone wants to participate in the AI revolution. US household equity allocations have reached a record 52%, four percentage points higher than the 2000 peak of 48% and double the 2008 low. Americans are flocking to the stock market.
