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(BRENDAN MCDERMID/REUTERS)

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Rising margin debt a red flag for U.S. stocks

Reports about U.S. investors abandoning equity markets are everywhere but the sharp increase in margin debt – funds borrowed to invest – is telling a much different story. Total margin debt has climbed to levels not seen since 2008 and the growth rate in borrowed funds is moving toward levels signalling danger ahead for S&P 500 stocks.