smaller busts precede larger busts

whichever is the ultimate resolution of the bubble - repricing will occur

for some assets this will be good, for others - not so much

even in the same asset class different assets perform differently (think manufacturing vs tech stock)

Illya Gerasymchuk 2025-07-07 19:08

these boom & bust leverage/debt cycles have been the norm in modern financial markets:

1️⃣ each cycle gets refiled with more debt/leverage - boom
2️⃣ eventually, the debt cannot repaid - bust
3️⃣ go to boom