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Investors are piling into stocks with growing margin debt

The borrowing uptick highlights how investors are seeking to amplify returns by using margin, a dynamic Wall Street is increasingly watching.

Reported · Written up by our desk · Sectors

MarketWatch reports investors are increasingly borrowing to buy stocks, relying on margin debt to amplify returns.

The outlet frames the trend as a reflection of rising greed in the stock market, as more participants use borrowed money to stay exposed to equity gains.

While the practice can boost buying power, MarketWatch says the growing pile of borrowed funds has some investors and Wall Street professionals nervous about what it could mean for market risk.

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