Saxo Market Call

Leverage upon leverage, what could go wrong?


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Today, a look at the latest strong session for some of the market's highest momentum names, as we note with some caution the risks that leverage, especially not fully evident hidden leverage is a mounting risk for the most speculative corners of the market. We also preview Nike earnings as the company does not yet look like a bargain after its 77% fall from all time highs into yesterday's low, unless it surprises strongly today after the close. Some thoughts on macro, FX and much more also on today's pod, which is hosted by Saxo Global Head of Macro Strategy John J. Hardy.

Links

  • FTAlphaville with coverage of the rising costs of equity financing on margin and concerns into today's quarter-end.
  • Bloomberg also with coverage of leverage and especially the hidden leverage as some combine margin lending with  options buying, even on levered ETFs. What could go wrong?
  • About twice per week (in normal times, hopefully soon to resume), you will find links discussed on the podcast and a chart-of-the-day over at the John J. Hardy substack.

    Read daily in-depth market updates from the Saxo Market Call and the Saxo Strategy Team here.

    Please reach out to us at [email protected] for feedback and questions.

    Click here to open an account with Saxo.

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    Trading financial instruments carries risks. Always ensure that you understand these risks before trading. This material does not contain investment advice or an encouragement to invest in a particular manner. Historic performance is not a guarantee of future results. The instrument(s) referenced in this content may be issued by a partner, from whom Saxo Bank A/S receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options.

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