by Anthony B Sanders
The S&P 500 stock market index is near an all-time high. But then again, margin accounts at NYSE firms are also at all-time highs.
Meanwhile, brokerage call money loan rates on margin accounts continue near the all-time low (despite recent increases in The Fed Fund Target rate).
Will The Fed’s proposed 25 basis point increase at the December FOMC meeting (which would result in the call money rate rising to 3.25%) result in a slowdown of margin borrowing? Probably not.
Party on Stan, Party on Janet!
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