Hua Er Jie Jian Wen·2025-07-25 12:56Group 1 - The current market is experiencing heightened speculative behavior and rising leverage levels, leading to accumulated bubble risks [1][2][3] - Goldman Sachs indicates that speculative trading activity is at historical highs, only surpassed by the 2000 internet bubble and the 2021 retail trading frenzy [1][2] - Deutsche Bank warns that margin debt has exceeded $1 trillion for the first time, with an 18.5% increase in margin debt over two months, marking the fastest pace since late 1999 or mid-2007 [1][3] Group 2 - Bank of America highlights that loose monetary policy and relaxed financial regulations are contributing to increased bubble risks, with global policy rates expected to drop further [1][4] - The increase in speculative trading is reflected in the rising trading volumes of unprofitable stocks and those with high valuation multiples, particularly among major tech companies and firms involved in digital assets [2][3] - The potential for a widening of high-yield credit spreads by 80 to 120 basis points is anticipated due to the rapid growth of margin debt [3]