WSJ Column Warns S&P 500's Record Options Volume, Rising Margin Debt Echo 1907 Crash Signals
A Wall Street Journal column argues that the current trading frenzy, marked by high leverage and speculative trading, closely resembles the market conditions leading up to the Panic of 1907. The S&P 500 has gained 12.65% in 2026. The column highlights that same-day options constituted 66.2% of all S&P 500 options volume in July, an all-time high, and margin debt reached $1.42 trillion in July, up from $1.02 trillion a year prior. The Shiller price-to-earnings ratio is near 42, significantly above its long-run average.
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