The surge in leveraged ETF assets linked to AI and Tech themes is a fascinating development, but it's not without its risks. In my opinion, this trend highlights the mania surrounding AI, a common behavior during all bull markets. However, it's important to remember that AI is only generating earnings/cash for a handful of companies, particularly in the memory/chip sector. South Korea and Taiwan markets, with their strong AI chipmakers, are particularly popular, but this concentration of risk is a cause for concern. The markets will have to absorb a lot of supply in the coming months, which could be a significant test. The current environment shares similarities with the late 1990s tech boom, but the lack of public market access for some of the biggest AI companies makes it difficult to evaluate. Personally, I think the pace of the rally may be unsustainable, and the risk of a pullback is high. The question remains: can the markets sustain this AI-driven frenzy, or will it lead to a significant correction?
