According to The Kobeissi Letter, U.S. margin debt surged by $53 billion in January, reaching a new all-time high of $1.28 trillion. This marks the ninth consecutive month of growth.
On a year-over-year basis, margin debt has jumped by $342 billion — a 36% increase — the sharpest rise since the 2021 meme stock frenzy.
More notably, margin debt as a percentage of real disposable personal income has crossed 6% for the first time in history, nearly three times higher than the peak seen during the 2000 Dot-Com Bubble.
Even after adjusting for total market capitalization, margin debt has reached record levels, signaling that investors are using more leverage than ever before.
Rising leverage often reflects strong risk appetite — but historically, extreme levels have also preceded periods of elevated market volatility.