This cycle hasn’t even seen a real bear market yet. Now we’re already seeing ETFs start to close. If the market truly freezes, a lot of these vehicles could be forced to unwind. That kind of forced liquidation could easily turn into a downward spiral — selling pressure feeding more selling — and then things break fast.
A supercycle only works if liquidity stays alive. Once it dries up, leverage and structured products don’t soften the fall, they amplify it.
