Margin debt just dropped $85 billion in July — the largest single-month decline on record. That's a sharp reversal after the biggest two-month borrowing surge ever in May and June.
For context: the second-largest monthly drop was $80 billion in January 2022, right before the $SPY fell 25% over the next nine months.
One month doesn't confirm a bear market, but a record unwind right after a record binge is worth paying attention to. The real risk isn't the first leg down — it's the feedback loop: falling prices trigger margin calls, forced selling accelerates, and deleveraging feeds on itself.
This is one of those moments where positioning matters more than headlines. Watch how this unfolds.
For context: the second-largest monthly drop was $80 billion in January 2022, right before the $SPY fell 25% over the next nine months.
One month doesn't confirm a bear market, but a record unwind right after a record binge is worth paying attention to. The real risk isn't the first leg down — it's the feedback loop: falling prices trigger margin calls, forced selling accelerates, and deleveraging feeds on itself.
This is one of those moments where positioning matters more than headlines. Watch how this unfolds.