US Margin Debt Nears Dot-Com Era Peak, Warning for Markets
US margin debt has climbed to $1.4 trillion, equivalent to 6.2% of M2 money supply, just below the 6.3% record set during the Dot-Com bubble. Past peaks at similar levels in 2000, 2007, and 2021 preceded major stock market corrections.
US margin debt has reached a record $1.4 trillion, representing 6.2% of the M2 money supply. This level is just shy of the 6.3% peak observed during the Dot-Com bubble in 2000.
Historically, such high leverage levels have been a cautionary signal. Similar peaks were recorded before the 2000 tech crash, the 2008 financial crisis, and the 2021 correction. While elevated margin debt does not guarantee a downturn or predict its timing, it is a risk factor often associated with subsequent market pullbacks.
Source: First Squawk