When Leverage Becomes The Market

www.zerohedge.com
The Leverage Machine

The market has become increasingly dependent on leverage. While headline indices remain relatively stable, the underlying plumbing tells a very different story. Tech volatility continues to surge, leveraged products keep attracting record inflows, and positioning has become increasingly crowded.

The system is becoming more sensitive to even modest shocks, making market moves larger, faster and increasingly self-reinforcing.