Market Watch
U.S. margin debt surged by $30B in November, hitting a new all-time high of $1.21T. That tells us one thing: investors are using more borrowed money than ever to stay in the market.
Leverage can push prices higher in the short term, but it also makes the market far more fragile. When sentiment flips, forced selling can happen fast—and pullbacks can be aggressive.
The market tape still looks strong, but with leverage at record levels, the margin for error is extremely thin. It wouldn’t take much of a catalyst to trigger serious volatility. Reports say President Trump is watching leverage levels closely, since excess risk can spill into the broader economy and influence policy decisions.
Bottom line: stay disciplined with your positions. When leverage unwinds, it doesn’t happen slowly.
