Investor leverage is flashing another frothy signal, with margin debt as a share of M2 money supply climbing to its second-highest level in history, trailing only the dot-com bubble peak, according to SoFi.
The ratio is now well above the highs seen before the financial crisis and above the 2021 speculative surge, according to a SoFi chart circulated by Barchart on social media Tuesday.
The move shows how much risk appetite has returned. Investors are borrowing aggressively against a money-supply base that is no longer expanding the way it did during the pandemic.
SoFi
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