U.S. margin trading debt soared to a record $1.21 trillion in November, marking a $300 billion increase and the seventh consecutive monthly rise. Over the past seven months, leverage trading debt has surged by $3.64 trillion, representing a 43% increase. When adjusted for inflation, this debt rose 2% monthly and 32% annually.
The margin debt to M2 money supply ratio has climbed to 5.5%, the highest level since 2007 and exceeding the peak during the 2000 dot-com bubble. Margin trading, which allows investors to borrow funds from brokers to purchase stocks, can amplify returns but also heightens risk exposure.
U.S. Margin Trading Debt Reaches Record $1.21 Trillion, Surpassing Dot-Com Bubble Levels
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