US margin debt hits an all-time high: leverage has surpassed the internet bubble period.

According to the latest data from 【Coin World】, the Trading Margin debt in the United States saw a significant rise in November. This month alone surged by 30 billion USD, reaching a historical high of 1.21 trillion USD. What is even more noteworthy is that this marks the 7th consecutive month of continuous increase.

How exaggerated is the cumulative increase over seven months? The growth of 364 billion dollars has reached an annual growth rate of 43%. Excluding inflation, there is still a month-on-month increase of 2% and a year-on-year growth of 32%. In other words, no matter how you calculate it, the leverage in the US investment market is going crazy.

More dangerous signals come from the ratio of Margin debt to the M2 money supply. This ratio has soared to about 5.5%, a level not seen since 2007. Think about it, this ratio is even higher than during the internet bubble in 2000 — a time when many investors lost everything.

For friends who are not very familiar, let me explain simply: Trading Margin debt is the total amount of money that investors borrow from brokers to buy stocks or other securities. This mechanism allows investors to amplify their investment scale with less own capital, thereby magnifying potential returns. Sounds good, right? But this double-edged sword also amplifies risks – when the market fluctuates in the opposite direction, losses will be magnified by the same magnitude.

How outrageous is the leverage ratio in the US investment market right now? From these data, it has really reached a dangerous boundary.