I had an interesting conversation with the UK CEO of Interactive Brokers at the Finance Magnates London Summit and he talked about how leverage hasn't been taken down at all, despite margin rates around 5%.
We're out of the era of free money but leverage is like a drug habit and traders will pile in.
I don't think it's just about the apes pumping on Wall Street Bets, Avatar 2 pre-sales are strong and Top Gun is starting another theatrical run. I'm cheering for the movie theatre business and I think a brilliant move for Amazon or Netflix would be to buy a theatre chain and include a few free movies with the Prime subscription.
All that said, it's incredible how any sign of the Fed taking its foot of the brake is met with a wave of speculative money. That won't make Powell happy.
