Record High Unpaid Margin Debt and Market Risk Signals
- 1Total margin debt reached a record high of 1.5 trillion dollars.
- 2There have been four instances since 1997 where unpaid margin debt surged by at least 65%.
- 3Crestmont Research calculated that investing in the S&P 500 for 20 years between 1900 and 2006 would have yielded profits in all periods.
So what's the key point?
The amount of money borrowed to buy stocks has reached an all-time high of 1.5 trillion dollars. In the past, when this amount surged like this, dangerous signals appeared in the market.
Source The Motley Fool +1 · View original ↗
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