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Great catch. But I think the surge in the ratio is more due to a sharp drop in the denominator. To me, the margin debt is more like a lagging indicator, because when people's risk appetite rises, they are willing to borrow debt for investment(Gambling). Once the economy declines, people immediately refuse to take on any risky investments, so the margin debt will also decline.

✍️ Margin Debt (Leverage/Borrowing) by Retail Investors. Maverick Special #7
Jul 30
at
5:13 AM
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