U.S. Trading Margin Debt Hits New High, Signaling Increased Market Risks

Margin debt levels in the U.S. recently surged to a record high of $1.2 trillion, exceeding the prior all-time mark by $572 billion in October. This marks the sixth consecutive month of increasing debt, raising concerns about excessive risk-taking and potential market volatility. The surge highlights a historical increase in investor leverage, exceeding levels seen during the 2000 dot-com bubble and even surpassing those observed during the 2007 financial crisis.