Part 3/11:
In the same vein, margin debt on the New York Stock Exchange has hit $1.2 trillion, marking a 45% increase over the past year. Historically, such rapid growth in leverage echoes patterns seen in 2021 and 2008, times when markets became dangerously overheated. This environment signals a high-risk setting, with investors increasingly betting on continued gains despite mounting signs of excess.
Caution from Market Titans
Not everyone is convinced that the market rally is sustainable. Prominent figures like Ray Dalio, Howard Marks, Michael Burry, and Warren Buffett have raised alarms about the current valuations and underlying economic fundamentals. Their warnings echo past instances where caution was met with future crises—raising the question: is this time different?