Data: The leverage ratio in the US investment market has surged, with margin debt to M2 ratio exceeding that during the internet bubble.

On December 21, KobeissiLetter released data showing that in November, U.S. Trading Margin debt surged by $30 billion, reaching a record $1.21 trillion, marking the seventh consecutive month of rise. Over the past seven months, U.S. margin debt has increased by $364 billion, a rise of 43%. After adjusting for inflation, margin debt grew by 2% month-over-month and 32% year-over-year, reaching an all-time high. Meanwhile, the proportion of margin debt to M2 Money Supply jumped to about 5.5%, the highest level since 2007. The ratio of margin debt to M2 is higher than during the 2000 internet bubble, indicating that leverage in the U.S. investment market has become outrageous. Trading Margin debt refers to the total amount of debt that investors incur by borrowing money from brokers to purchase stocks or other securities in securities trading, allowing investors to amplify their investment scale with less own capital, thereby increasing potential returns but also amplifying risks.