CrowdWisers™monthly charts and more -3
09:56 17-Jul-26
Market
leverage jumped
significantly to yet another all-time high of 6.72x in June even
though funds kept flowing into investment accounts of all types.
Yesterday's Pending Home Sales decline
indicates that this could continue in the short term, but it is also
trailing data, and the chip rout now appears in full swing. One
factor that I haven't mentioned yet is the boom
in leveraged ETFs, which increase volatility and whose mechanics
back my view that the situation is unsustainable
over the long term.However, proprietary analysis by CrowdWisers indicates that the current pullback is more likely a chip/AI market retreat, rather than a more general market rout. It downplays news from China, and provides relevant detail on megacap developments for Alphabet and others.
American prices for natural gas and electricity rose moderately in June but the latter hit yet another all-time high. This highlights how it should no longer matter what the rate of inflation is because affordability will eventually tip incumbent policy, then outpace the wealth effect, toppling markets. CrowdWisers has analyzed multiple individual stocks specifically selected because they cut against this trend and often have negative equity index correlation.