Investors are borrowing huge sums of money to buy stocks. Is that a problem?
The “everything rally” that started in stocks last year has been boosted by investors betting money they have borrowed. That includes both small players and heavyweights like Archegos Capital Management, the investment firm that triggered a mini-meltdown for several companies’ stocks.
As of late February, investors had borrowed a record $814 billion against their portfolios, according to data from the Financial Industry Regulatory Authority, Wall Street’s self-regulatory arm...