Analysis: Market risk appetite is at a historical high, and the path to upward movement will be even more volatile

October 17th: The Transaction Information Platform Kobeissi Letter pointed out that in 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 $67 billion in margin debt, reaching a record high of $1.13 trillion. Undoubtedly, risk appetite is at historically high levels, and everyone wants to participate in the artificial intelligence revolution. The stock allocation of American households has reached a record high of 52%, exceeding the peak of 48% in 2000 by 4 percentage points. This ratio is also twice the low point in 2008, and Americans are pouring into the stock market. A 5x leveraged ETF for the US stock market has just been submitted to the Securities and Exchange Commission. These ETFs will cover everything from NVIDIA to cryptocurrency. That means if NVIDIA drops by 10% in a day, the leveraged ETF will drop by 50%. The journey of risky assets rising will also become more turbulent.