Arpit Gupta: Leverage drives retail manias, bubbles, and market crashes

Arpit Gupta: Leverage drives retail manias, bubbles, and market crashes
Leverage leads to retail bubbles and crashes

Arpit Gupta highlights the cyclical nature of leverage in financial markets, noting its role in supporting retail-driven manias, creating price bubbles, and ultimately leading to crashes.

His comments emphasize that this pattern is recurrent throughout history.

Gupta has previously discussed the narrow base of current market gains, citing AI and energy as the leading sectors while others have lagged. In an earlier note, he addressed the mechanics of passive investing, arguing that index fund inclusion always involves subjective choices. These remarks come as retail participation and leverage remain under scrutiny.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.