U.S. Margin Debt Reaches Record High in January, Surpassing Dot-Com Bubble Levels

The Kobeissi Letter posted on X that U.S. margin debt surged by $53 billion in January, reaching a record $1.28 trillion. This marks the ninth consecutive monthly increase, with year-over-year margin debt rising by $342 billion, or 36%, the largest increase since the 2021 meme stock frenzy. Additionally, margin debt as a percentage of real disposable personal income has exceeded 6.0% for the first time on record, nearly three times higher than the peak during the 2000 Dot-Com Bubble. Market-cap adjusted margin debt has also reached an all-time high, indicating that investors are utilizing more leverage than ever before.