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A Popular Tax-Minimizing Trade Is Juicing Wall Street's Borrowing Binge
The surge in margin loan balances at Charles Schwab, nearing $190 billion, reflects the growing appeal of tax-loss harvesting strategies among investors. This trend is notable amid broader market dynamics as traders seek to optimize their portfolios while navigating tax implications. The influx of borrowing is significant as it suggests increased risk appetite and potential for market volatility, raising questions about the sustainability of such practices in varying market conditions.