U.S. Investors' Leverage Reaches Record Levels Amid AI Boom

According to BlockBeats, the Kobeissi Letter has highlighted a significant increase in leverage among U.S. investors over the past two years, nearly doubling since the post-pandemic growth in 2020. In September, American investors took on an additional $67 billion in margin debt, bringing the total to a record $1.13 trillion. This surge indicates a peak in risk appetite, as many are eager to participate in the artificial intelligence revolution. The proportion of U.S. household stock allocations has reached an unprecedented 52%, surpassing the previous high of 48% in 2000 by four percentage points and doubling the lowest point in 2008. Americans are increasingly entering the stock market. A new 5x leveraged ETF for U.S. stocks has been submitted to the Securities and Exchange Commission, covering a range of assets from Nvidia to cryptocurrencies. This development suggests that if Nvidia were to drop by 10% in a single day, the leveraged ETF could fall by 50%, indicating a more volatile path for risk assets.