“Speculative stock #bubbles ultimately see the gamblers take on too much debt. #MarginDebt popularity accelerates at peaks. At this point the market is dancing on a knife’s edge. Passive investing’s IQ drain, and #stonksgoup hype, add to the danger…
…The first step is to recognize that 5:1 is not a natural ratio. It is a product of a paradigm. So what will continue this paradigm? What may reverse it? This is the knife’s edge, because we are at 5:1. It may go to 100:1. Or become -5:-1. But parabolas don’t resolve sideways.” – Dr. Michael Burry, from March 2020 tweets commenting on the ongoing passive investing bubble.