Analysis: Market risk appetite is at historically high levels, and the rise ahead will be more tumultuous.

On October 17, the 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 pandemic in 2020. In September, American investors took on $67 billion in Margin debt, bringing the total to a record $1.13 trillion. Undoubtedly, risk appetite is at an all-time high, with everyone wanting to participate in the AI revolution. The stock allocation ratio of American households has reached a record 52%, surpassing the peak of 48% in 2000 by 4 percentage points, and is also double the lowest point in 2008, as Americans flock to the stock market. A 5x leveraged ETF has just been submitted to the SEC, covering everything from Nvidia to Crypto Assets, which means if Nvidia falls 10% in a day, the leveraged ETF will fall by 50%, making the rise of risk assets even more turbulent.