The Kobeissi Letter post below provides the evidence that the stock market crash is not too far away. The Wall Street cabal and their CNBC mouthpiece have once again lured the average schmuck into the most over-valued market in history.
The Kobeissi chart shows individual investors now make up 20% of the daily trading volume, close to the highest in history. You can see that after the last great collapse in 2009, individual investors made up less than 10% of daily trading volume. The dumb money is always lured into the market before they pull it.
The Margin Debt chart provides even more proof you can’t fix stupid. Not only have the dumb money schmucks bought into the AI bullshit narrative, going all in on the “Magnificent Seven” stocks, but they are so confident in their investing magnificence, they have driven margin debt to an all-time high of $1.2 trillion.
Their confidence is at all-time highs, just like it was in 2000 and 2008. When retail buying, based on momentum, drives the market to highs, as the smart money sells to them, the market looks unstoppable. But, when the bottom drops out and margin calls start to pile up, the path to a 20% to 30% crash in a matter of days will sober up these dumb money idiots.