Investor risk appetite is surging at a historic pace: The ratio of levered long to short ETF trading volume is up to ~3.3, the highest since July 2024. In other words, trading activity in levered long ETFs is more than 3 times larger than that of leveraged short ETFs. This ratio has more than DOUBLED since late March and is comparable to the peak level seen during the 2020 market recovery following the pandemic crash. The only other period that significantly exceeded the current level is the 2021 meme stock frenzy, when the indicator jumped to ~6.0. Meanwhile, assets under management in US leveraged ETFs is up to a record $180 billion, rising ~$75 billion over the last 12 months. Investors are extremely bullish right now.(The Kobeissi Letter)