Markets have looked past the standoff in the Persian Gulf and concentrated on spectacular earnings, particularly in the United States. Yet, there is still too much leverage in the markets. FINRA margin debt did come down a little in March, but excessive borrowing to buy stocks continues to leave investors exposed to sudden and unexpected volatility. Ultimately, the speculators need to be cleared out of the markets before significant buying opportunities emerge. The outlook is good, but the captain has not turned off the seatbelt sign. Below is the chart for the last ten years of margin debt ended March 31, 2026.
