U.S. Margin Debt Hits $1.4 Trillion in May, Up 53.7% Year-Over-Year

According to MarketWatch reporting on FINRA data, U.S. margin debt reached $1.4155 trillion in May, up 53.7% from the same period last year. The surge marks one of the fastest growth rates on record, with current levels placing in the top 10 percent of historical increases. Scott Opsal, chief investment officer at RootHold Group, noted that similar acceleration rates preceded major market downturns in 2000 and 2007, as well as the 2021 peak. However, analysts cautioned that rapid margin debt growth does not necessarily precede sharp declines; S&P 500 cases in the highest growth decile averaged only 0.5 percent losses over the subsequent 12 months.
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