AI Stock Margin Tops NT$300 Billion: Wall Street Quietly Retreats — 3 Wealth-Protection Plays
Margin balance on Taiwan's AI stocks surged past NT$300 billion in 2024. Retail investors scramble to borrow money to buy, convinced the AI theme is the last chance to turn their life around. Yet while you chase the rally, foreign institutional investors on Wall Street are quietly doing the opposite — they are selling, systematically and on schedule. A new high in margin balance is not proof of a strong bull market; it is the warning light of retail leverage piling up. This article breaks down the mechanics of forced margin selling, three wealth-protection plays (core-satellite, stop-loss/take-profit, periodic rebalancing), two overlooked advanced traps (margin usage ratio at 20%, foreign institutional open-interest in options), four iron rules, and a three-question decision framework. Core thesis: when others buy confidence with borrowed money, prepared investors buy protection with their own.