A short transcript excerpt discussing how leverage multiples influence market liquidity and trends: the speaker claims that 3.3x leverage is typical in bull markets and 3x in bear markets, and that the unwinding of these higher-leverage positions drives deep, prolonged bear market moves. The piece frames bull and bear markets as large institutional cycles tied to leverage dynamics.
3.3x in bull markets and 3x in bear markets.
Not only do we have history on our side. Right. So typically, you know, 3.3x is taken in bull and 3x is taken in bear. Right. So it's actually the 3x liquidity and the low leverage positions that set the bear trend. Right. So when the market eventually comes for this 3x later, that's what sets the bear trend. Because the move has to be so deep and so long. So, for example, when the market finally comes for this. Right. Starts coming for this, this is going to take a long time. Correct. And the move. The move will be very, very deep when it does. So people just say bear market, bulls, markets, they're just cycles of institutional cycles that are just big.
