Risk appetite is incredibly strong: Total assets under management (AUM) of all leveraged equity ETFs have now exceeded 1.6 billion, the highest since September 2022. This marks one of the highest readings in years, only below the 1.8 billion peak seen 3 years ago. Since April, leveraged equity ETF assets have risen +700 million, or +74%. This comes as 1-year inflows into those funds reached their highest levels in at least 12 months. Interestingly, the largest 1-year inflow was recorded in leveraged ETFs tied to gold miners. Appetite for risk is near records.(The Kobeissi Letter)