Investors Borrow Less to Buy Stocks for First Time Since Pandemic Began, an Ominous Sign

1 year ago
U.S. investors cut their use of leverage in July, marking the first month since the onset of the pandemic that saw a reduction in the use of margin debt to buy securities like stocks, potentially a warning sign for markets buoyed by heavy use of borrowed money. Data from the Financial Industry Regulatory Authority (FINRA) on the use of margin debt, which is money investors borrow from brokers to buy securities, shows $844 billion borrowed against portfolios in July. That’s the first month ...
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