Tom Lee: The US stock market’s financing balance has seen one of the largest increases in decades, rising at a rare level over the past 60 years. In the previous five times, each market also led to a half-year consolidation period.

Mars Finance news. On July 20, Tom Lee said in a CNBC interview over the weekend that U.S. margin debt rose 54% year over year, marking the sixth-largest increase in the past 60 years. “A group of traders who borrow money to buy stocks rush in, and history shows that the market responds: the South Korean stock market is the template—1.2 million brokerage accounts faced margin calls, which could account for 10% of all adult investor accounts.” Tom Lee said that in U.S. stock market history, after the prior five times when financing balances surged, markets often saw six months of consolidation.
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