McCullough: The Leveraged ETF Bubble is Popping

In yet another indicator of "The Mother of all Bubbles," Hedgeye CEO Keith McCullough highlights the crumbling market cap in leveraged ETFs in this clip from The Macro Show.

As bear market bounces grow increasingly fragile, the consequences of short-dated options mania and one-way leverage are finally being exposed.

“The whole thing got as levered as the game has ever been. And now it’s coming unglued,” McCullough says, pointing to retail-favorite trades like Nvidia and Tesla as repetitive, doomed plays for uninformed investors. 

The carnage is real—leveraged ETF market cap saw 34% drawdowns, requiring more than a 50% gain just to breakeven.

Hedgeye, by contrast, remains steadfast in its foundational principle: risk-manage your capital, preserve it, and refuse to play the Wall Street casino game.

As the bubble bursts, the opportunity to build a smarter, more disciplined investment world has never been clearer. Subscribe now to The Macro Show.

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