Margin debt hits another record high

FINRA margin debt rose to another record high, reaching $1.023 trillion in July. Rising margin debt reflects investor confidence and often supports market strength. History shows that it is not the buildup of leverage that is dangerous, but the unwind.

If margin debt falls while the S&P 500 keeps climbing, it signals investors are quietly de-risking—a pattern that preceded peaks in 2000, 2007, 2018, 2019, and late 2021 (see chart).

The takeaway: leverage rising with stocks is normal. We would worry if that tide began to go out while stock prices keep pressing higher.