The Rational Reminder Podcast · Thursday, October 1, 2026
Victor Haghani expressed concern over the amount of leverage in the U.S. stock market, particularly within leveraged ETFs and options trading, seeing it as a potential exacerbator of market instabilities. While acknowledging margin interest costs might deter some, he noted that hidden leverage and the potential for rapid declines, as seen with funds like Situational Awareness, are worrying.
“I think that the leverage is concerning, not massively concerning, but concerning. There's more than meets the eye from just looking at the margin figures.”
“Then we have this explosion in options trading. That is effectively potentially a lot of leverage.”
“I think that the market can absorb things sometimes and other times it doesn't.”