Margin debt climbed to $1.5 trillion in June, up 23% in three months. Broader leverage measure near 1.4% of S&P market cap, exceeding 2000 peak.
Alpha Score of 65 reflects moderate overall profile with strong momentum, moderate value, moderate quality, moderate sentiment.
Investors borrowed a record $1.5 trillion against their stock holdings in June, according to FINRA and NYSE data compiled by JPMorgan.
The total rose for the third consecutive month, adding $281.2 billion, or 23%, from May. Over the past 12 months, margin debt has climbed $494.1 billion, or 49%.
Adam Kobeissi, who compiled the data, published the figures. "This marks the 3rd consecutive monthly increase, totaling +$281.2 billion, or +23%," he said.
When stocks fall sharply, leveraged positions can trigger margin calls, forcing brokers to sell collateral. That dynamic has amplified past market declines, including during the 2000 dot-com bust and the 2008 financial crisis.
A broader measure of investor leverage, which subtracts cash held in brokerage accounts from total margin borrowing, reached about 1.4% of the S&P 500's market capitalization, Kobeissi said. That is near the highest on record, matching 2018 peaks and exceeding the 2000 dot-com peak of about 1.1%.
"US investors have never been more leveraged," he said.
JPMorgan Chase & Co., the largest US bank by assets, holds a moderate Alpha Score of 63, reflecting balanced risk-reward at its current price of $341.10.
The next monthly FINRA margin debt report is due in late July.
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