Not calling a market top just being sarcastic. I'm just saying it's bad portfolio management to lever up on the long side with stretched valuations.
Well, they go hand in hand, righ?
It's easy to lever up because rates are low. And valuations are stretched because rates are low.
When rates are high, it is harder to lever up, but valuations will be cheaper.
So really you want to look at the spread, right? Use leverage when the spread is high and delever when the spread comes down.