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Strategies & Market Trends : The Art of Investing

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Dec 22 4:00 PM EST

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To: Sun Tzu who wrote (10702)	12/20/2025 1:28:06 PM
From: DinoNavarre	Read Replies (1) of 10711

Grok.... How much has FINRA Margin Debt grown in ratio to total U.S. stock markets market cap over the last 30 years? Show me a graph or chart. Over the last 30 years (approximately 1995 to 2025), FINRA margin debt has grown significantly in absolute terms, but its ratio to total U.S. stock market capitalization (proxied by the Wilshire 5000 total market value) has remained relatively stable, fluctuating in a range typically between 1.3% and 2.9%.Key Trends Around the late 1990s/early 2000s (dot-com peak), the ratio approached higher levels (~2.5-2.9%). It dipped during market downturns (e.g., post-2008 financial crisis lows around 1.3-1.5%). Recent data shows the ratio around 1.7-1.9% (as of late 2025, with margin debt at record highs of ~$1.21 trillion in November 2025 and total market cap exceeding $67 trillion). The median historical ratio since the late 1990s is approximately 1.96%, indicating limited net growth in the relative leverage measure despite absolute debt records. This suggests that while investor borrowing has increased alongside market expansion, the proportion of margin debt relative to overall market size has not shown dramatic sustained growth—often peaking near market tops and troughing near bottoms.Chart: FINRA Margin Debt as % of U.S. Total Market Cap (Approximate Historical Trend, 1995–2025) Grok can make mistakes. Always check original sources. The ratio has shown cyclical behavior tied to market sentiment rather than a strong upward trend over the full period. High ratios often coincide with elevated investor leverage and market exuberance, while lows reflect deleveraging during corrections.

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