Hy Luu, a 29-year-old engineering consultant living with his mother in Houston, started using margin investing in 2021 to buy Tesla shares, accumulating over $100,000 in margin debt while growing his net worth from negative to over $800,000. Robinhood’s margin book hit a record $21.6 billion in the second quarter, up 127% year over year, while total margin debt reached an all-time high of approximately $1.5 trillion in June. Fundstrat data shows that whenever monthly margin debt growth exceeded 45% year over year since 1960, the stock market declined five out of six times. Despite the considerable risks, Luu continues his strategy with a time horizon of many decades and a high conviction in Tesla.
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