How Excessive Leverage brought down Wall Street’s Golden Boy

📈 Download the full Portfolio Performance Slides: Here

📧 Get in touch: theartofinvesting@ig.com

📱 Behind the scenes: @_theartofinvesting on TikTok | @theartofinvestingpod on Instagram

🎧 Listen on: Apple, Spotify, YouTube

This week on The Art of Investing, after a sharp reversal across AI-linked stocks, the team explain how Leopold Aschenbrenner’s highly leveraged AI trade became one of the biggest stories in markets, why crowded positioning matters, and how forced selling helped shape the latest moves across tech, software, commodities and emerging markets.

They also look at the parallels with previous market excesses, including 1929, ask whether AI could be disinflationary, and debate whether markets can keep running into Jackson Hole before investors need to think about taking risk down.

This Week’s Highlights:

📈 Portfolio Jumps +4.2%

A strong week takes the portfolio to +25.5% since inception, with no changes made this week.

⚠️ Leopold and Leverage

The team unpack how leverage works, why margin calls can force selling, and why a “one big trade” portfolio can unravel quickly.

⚒️ Miners Lead the Way