A mesmerizing jolt of leverage in late 1999 topped out in March 2000. That same month, the S&P 500 hit its all-time bubble peak.
A similar surge in leverage began in 2006. Margin debt peaked a mere three months (July 2007) before the stock market’s high water mark.
Leverage has been cooling over the last few years, but that hasn’t stopped the S&P 500. At least not yet.