Phyrex stated on the X platform that American investors are chasing stock market highs through high leverage. As of June, the net credit balance of US brokerage accounts fell by about $70 billion in a single month, to negative $1.061 trillion, hitting a historic low. During the same period, margin trading and securities lending debt increased by approximately $86 billion to $153 trillion, marking the third consecutive month of growth and breaking records. Phyrex pointed out that the net credit balance continues to deteriorate, investors' cash buffers have decreased, and stock positions are increasingly dependent on borrowing. Currently, leverage is widely present in the entire securities brokerage system in the US market. During the rising phase, the stock price increases the net asset value of the account and releases the financing limit, forming a mechanical buying market; When the market weakens, margin pressure forces investors to replenish cash or sell stocks, converting leveraged funds into mechanical selling. The US stock market is currently facing high valuations and a high financing environment. If new funds slow down, leveraged positions will amplify market volatility.
