Maggie Lake Talking Markets Episode 99: Is There Too Much Greed? With Tommy Thornton.
Oct 27, 2025
In this discussion, Tommy Thornton, founder of Hedge Fund Telemetry and market sentiment analyst, highlights concerning overvaluation in tech stocks like NVIDIA and AMD. He contrasts extreme bullish sentiment from his Daily Sentiment Index with the CNN Fear & Greed Index. Tommy also shares his perspective on excessive leverage risks, crowded trades, and the potential inevitability of a bear market, comparing current conditions to past market crises. Insights into short positions and energy bottlenecks for AI infrastructure add intriguing layers to their conversation.
AI Snips
Chapters
Transcript
Episode notes
Valuations Fueled By Announcement, Not Earnings
- Markets are overvalued at the index level while leading tech names trade at historically high multiples.
- Thornton sees valuation expansion driven by announcements and momentum rather than underlying earnings growth.
Leverage Widens The Path To A Fast Unwind
- New leveraged products and high margin debt amplify downside risk when sentiment reverses.
- Thornton warns that retail and funds are increasingly levered into the same crowded trades.
Prime Broker's Stark On-The-Ground View
- Thornton recounts a prime-broker friend saying, 'everybody is levered in the same crap.'
- That on-the-ground view from prime brokers reinforced his concern about crowding and risk.