The David Lin Report Leverage Time Bomb: ‘Nobody’s Prepared’ For What’s Coming | Michael Gayed
Aug 19, 2025
Michael Gayed, a Portfolio Manager for The Free Markets ETF, dives into pressing market risks tied to high leverage and the implications of deregulation. He unpacks Federal Reserve strategies post-Jackson Hole and examines the ongoing tensions between the U.S. and Russia, highlighting market impacts. Gayed discusses fiscal risks linked to margin debt and suggests bullish opportunities emerging from banking deregulation. His insights emphasize the importance of diversification and alternative assets like gold and Bitcoin in a volatile landscape.
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Leverage Is The Biggest Market Risk
- The primary market risk is extreme leverage across players and products.
- High margin debt and crowded call-option positions raise the chance of a sharp air-pocket when sentiment reverses.
Deregulation Could Broaden Market Leadership
- Deregulation is an underappreciated tailwind that can broaden market leadership.
- Looser rules could channel fresh liquidity into mid and small caps and boost earnings potential.
Position For Deregulatory Winners
- Consider exposure to companies set to benefit from deregulation rather than crowded mega-cap winners.
- Michael runs the Free Markets ETF to capture stocks that directly benefit from regulatory rollbacks.