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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.