KobeissiLetter: U.S. margin debt hits record high, leverage surpasses levels seen during the dot-com bubble

According to KobeissiLetter data, in November, US trading margin debt surged by $30 billion, reaching a record high of $1.21 trillion, marking the seventh consecutive month of increase. Over the past seven months, US margin debt has soared by $364 billion, an increase of 43%. After adjusting for inflation, margin debt has risen 32% year-on-year to a historic high. The proportion of margin debt to M2 money supply has jumped to about 5.5%, higher than during the internet bubble of 2000, indicating that leverage in the US investment market has reached an absurdly high level.