Market Factors: What a market about to blow up looks like

This edition of “Market Factors” argues markets are starting to resemble “pre-blowup” mania conditions, with several signals that risk may be building. The piece cites a framework from U.S. planner Jon Petersen’s The Art of Blowing Up, describing a path from innovation to greed fueled by leverage, followed by a crash once liquidity disappears and margin calls force selling. It adds RB Advisors’ warning that U.S. margin debt is rising faster than mortgage or credit card debt, and flags leveraged, single-stock ETFs as another concern. The author also raises the risk of off-balance-sheet issues, noting how data-center funding can be hidden in footnotes. In response, it stresses diversification, reducing leverage, and keeping more cash.