Data: Leverage in the US investment market has surged, with the ratio of margin debt to M2 higher than during the dot-com bubble.

According to Mars Finance, on December 21st, KobeissiLetter released data showing that US trading margin debt surged by $30 billion in November, reaching a record $1.21 trillion, marking the seventh consecutive month of increase. Within seven months, US margin debt surged by $364 billion, an increase of 43%. Adjusted for inflation, margin debt increased by 2% month-on-month and 32% year-on-year, reaching a historical high. Simultaneously, the ratio of margin debt to M2 money supply jumped to approximately 5.5%, the highest level since 2007. The ratio of margin debt to M2 is higher than during the dot-com bubble of 2000, indicating that the leverage ratio in the US investment market is already ridiculously high. Trading margin debt refers to the total amount of debt incurred by investors borrowing money from brokers to purchase stocks or other securities in securities trading. It allows investors to amplify their investment scale with relatively little of their own capital, thereby amplifying potential returns, but also amplifying risks.