BREAKING: US margin debt dropped -$85 billion in July, to $1.42 trillion, the largest monthly decline on record. This also marks the first monthly decrease since March. By comparison, the 2nd-biggest monthly drop was recorded in January 2022 at -$80 billion, just as the bear market started. This all follows a +$198 billion jump in margin debt in May and June, the largest 2-month increase on record. Despite this record decline, margin debt has still surged +$518 billion, or +58%, since the start of 2025. Levered investors were crushed last month.(The Kobeissi Letter)