Markets could face significant headwinds this year from three interconnected forces: overleveraged positions, the tightening private credit landscape, and systemic risks flying under the radar.

Leverage amplifies both gains and losses. When positions get too crowded, even minor corrections trigger cascading liquidations across trading venues. The private credit boom, which exploded during low-rate environments, is starting to show cracks—defaults are ticking up, spreads are widening, and refinancing becomes trickier.

But the real wildcard? Hidden risks. Off-balance-sheet exposures, derivatives complexities, and interconnected counterparty dependencies mean the next shock could surprise even seasoned traders. Crypto markets, inherently volatile, tend to feel the shockwave first when traditional finance stumbles.

What's your read? Are you hedging defensively this year, or staying bullish on specific assets?