Margin lending: investors are loading up on cheap debt to buy stocks

Central banks will be slow to raise rates, but even small changes matter with US margin debt at record highs

Margin lending at US brokers

Count me among those who are sceptical about how quickly central banks will raise interest rates. Yes, they’re making noises about doing so – and with inflation high, many analysts suggest they should act faster. But our highly indebted world can’t take high rates and policymakers know that. So while rates should begin creeping off the floor next year, the pace of increases is likely to be slow and they will take advantage of every reason – a new variant here, a wobble in the markets there – to hold back.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.