“It’s all about leverage. With rates rising, the chance of an accident that has cascade effects is increasing.
What Could Possibly Go Wrong?
As you will doubtless have been informed, world equities are now in a bear market. What happens next?
The most excessive speculation has already been washed out of the system. Those warning of bubbles in bitcoin and other cryptocurrencies, meme stocks, or the growth tech companies owned by the ARK Innovation ETF certainly seem to have had a point. By last November, meme stocks were so exciting that their own benchmark gauge, the Solactive Roundhill Meme Stock index, was initiated. Since then, that index has dropped 70%. The same is true of ARK and bitcoin — this looks like a wave of speculative excitement that flowed into the same things together, and has now flowed out again.”.
