Analysis: Market risk appetite is at a historic high, making the path upward more volatile

BlockBeats news, on October 17, trading information platform Kobeissi Letter pointed out that over the past two years, the leverage ratio of American investors has nearly doubled, similar to the growth rate after the 2020 pandemic. In September, American investors took on another $67 billion in margin debt, bringing the total to a record $1.13 trillion. Undoubtedly, risk appetite is at a historic high, with everyone wanting to participate in the artificial intelligence revolution. The proportion of US household stock allocation has reached a record 52%, which is 4 percentage points higher than the 48% peak in 2000 and twice the lowest point in 2008. Americans are pouring into the stock market.

A 5x leveraged ETF for US stocks has just been submitted to the US Securities and Exchange Commission. These ETFs will cover everything from Nvidia to cryptocurrencies, which means that if Nvidia drops 10% in a single day, the leveraged ETF will drop 50%. The road to gains for risk assets will also become more volatile.