Margin is a very dangerous game that many people play. Just a small percentage down and the margin calls happen. This will destroy the people who are in way over their heads.
Do you expect this to play a factor in the next crash?
When you look at stocks, looking at the nominal value is not sufficient to determine if the prices are too high. First you have to adjust for inflation which nobody ever does. You can look at volume, PE ratios, and hundreds of other indicators. But there is one that stands out above the rest. One indicator that causes a massive cascading effect. Oh, and it’s at a RECORD LEVEL right now.
Investors’ Zeal to Buy Stocks With Debt Leaves Markets Vulnerable – WSJ
https://www.wsj.com/articles/investors-zeal-to-buy-stocks-with-debt-leaves-markets-vulnerable-1519560001
spxmar.jpg (1148×890)
https://i0.wp.com/northmantrader.com/wp-content/uploads/2018/02/spxmar.jpg?ssl=1
Margin-debt-Feb-18.jpg (550×471)
https://i0.wp.com/dollarcollapse.com/wp-content/uploads/2018/02/Margin-debt-Feb-18.jpg?ssl=1
9.png (3902×2456)
file:///Users/themoneygps/Desktop/9.png
Goldman Says Stocks May Dive 25% If 10-Year Yield Hits 4.5% – Bloomberg
https://www.bloomberg.com/news/articles/2018-02-25/goldman-says-stocks-may-plunge-25-if-10-year-yield-hits-4-5
Form 10-K
https://www.sec.gov/Archives/edgar/data/886982/000119312518056383/d480167d10k.htm
bear market checklist 13.jpg (890×369)
https://www.zerohedge.com/sites/default/files/inline-images/bear%20market%20checklist%2013.jpg?itok=p4FJdUcd
DB debt gdp future.jpg (780×427)
https://www.zerohedge.com/sites/default/files/inline-images/DB%20debt%20gdp%20future.jpg?itok=Yc6MH7wh
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