Margin debt in the United States rose by $112 billion in May, reaching a new high of $1.42 trillion. This marks the second consecutive monthly increase, bringing the total rise over the past two months to $195 billion. Over the last 12 months, margin debt has jumped $495 billion, a 54% increase.
Adjusted for inflation, the metric is up 7.9% from the previous month and 47.4% compared with the same period a year ago. Real margin debt has surged 550% since 1997, far outpacing the S&P 500’s 357.7% gain over the same timeframe. The financial leverage in the market continues to grow at a historic pace.