Markets are navigating the aftermath of a sharp deleveraging across asset classes, with Kevin Warsh's "say less" Fed communication strategy drawing both criticism and scrutiny. Money managers complain of sparse guidance, contributing to weakness in long-term Treasuries. Meanwhile, margin trading in South Korea has plunged, mirroring declines in Japan and leveraged tech ETFs globally.

Hedge funds, not just retail investors, were heavily leveraged heading into summer, raising concerns over chaotic unwinds. Goldman Sachs highlights the broad-based nature of this leverage implosion. Analysts at Soc Gen suggest momentum may soon reassert itself, as evidenced by new S&P 500 highs and stabilization in Korean stocks. Two paths emerge: deeper deleveraging or a return to market momentum fueled by FOMO.