Margin debt hits record high, fueling Wall Street correction worries
Borrowing against stocks has grown this fast in only three years since 1997: 2000, 2007 and 2021, each just before a major slump.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
Margin debt has hit record levels, growing at a pace seen in only three years since 1997. Those years, 2000, 2007 and 2021, all came before major corrections. A separate market measure has also done something for only the fourth time since 1997.
Why it matters
Such circumstances have historically been a red flag for stocks, and the earlier comparable years were followed by major corrections.
Timeline
- Oct 17, 5:30 AM ET: Margin debt hits record levels, growing as rapidly as in only three years since 1997.
- Oct 18, 6:36 AM ET: A unique stock market measure does something for only the fourth time since 1997, described as a historical red flag for stocks.
Coverage
- We Just Witnessed a Unique Stock Market Measure Do Something for Only the 4th Time Since 1997, and It Offers a Chilling Outlook for Wall Street (fool.com)
- Stock market correction fears rise as margin debt hits record levels (businessinsider.com)
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