Tom Lee: US Stock Market Margin Debt Sees Rare 60-Year Surge, Previous 5 Instances Followed by 6-Month Consolidation Period

BlockBeats News, July 20th, Tom Lee stated in a CNBC interview over the weekend that U.S. margin debt has increased by 54% year-over-year, the sixth-largest surge in the past 60 years. "A group of traders borrowing money to buy stocks has surged in, and history shows that the market will react: the Korean stock market is a template, with 1.2 million brokerage accounts facing margin calls, potentially representing 10% of all adult investor accounts."

Tom Lee stated that in the history of the U.S. stock market, after five previous surges in margin balances, the market often experiences a six-month consolidation period.