Data: The leverage ratio in the U.S. investment market has surged, with margin debt increasing by $57.2 billion in October

KobeissiLetter released data showing that in October, U.S. margin debt surged by $57.2 billion, reaching a record $1.2 trillion, marking the sixth consecutive month of increase. So far this year, U.S. margin debt has increased by $285 billion, a rise of 32%. In the past six months, margin debt has skyrocketed by 39%, the largest increase since 2000, even surpassing the increase during the 2021 meme stock craze. The leverage in the U.S. investment market has become excessively high.

Margin debt refers to the total amount of money borrowed by investors from brokers to purchase stocks or other securities in securities trading, allowing investors to amplify their investment size with less of their own funds, thereby increasing potential returns but also amplifying risks.