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 margin debt

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updated Sun. March 31, 2019

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Margin debt also characterizes bubbles. Our margin debt-to-GDP ratio is now at 3%, an all-time high -- even surpassing the Tech Bubble highs. John Hussman did the chart below which modifies the traditional Shiller CAPE P/E (cyclically-adjusted price/earnings ratio) to account for use of margin debt in the ...
In addition to this, we have cash levels at all-time lows and margin debt at all-time highs. Mutual funds and ETFs that focus on stocks just recently raked in $58 billion in new money, according to Bank of America Merrill Lynch. And at 150%, the total market capitalization of equities has never been higher in ...

Technicals: We're in the buyback blackout period, the trend is still up, and margin debt has expanded by 16.2% over the past year. Sentiment: The VIX futures curve is in contango (although the VSTOXX curve is now backwardated), and CBOE's total put/call ratio is quite low. Rates: The TED spread (which ...
Charts since 1995 show the two as well-matched; it was mainly in late 2006 to mid-2007 that the rate of increase in margin debt greatly exceeded the rise in stock values, soaring from about $300 (£210) billion to $400 billion. Borrowing to buy US stocks is at a record high near $600 billion, though its rate of ...
In 2010 about $236 million in margin debt was reported to the NYSE. Whether an individual should borrow from one asset to invest in another seems to depend on their individual financial situation, age and goals, says Lyn Alden, founder of Lyn Alden Investment Strategy. Because there aren't many ...
Margin debt balances are at record levels. And despite recent strength in employment and GDP numbers, the U.S. government is headed for trillion-dollar deficits. A rise in borrowing costs threatens to unwind leverage in the equity markets and hit Uncle Sam with huge increases in debt servicing costs.

Like the stock market, margin debt has risen sharply in recent months. According to FINRA's latest margin statistics, borrowing by investors in November 2017 stood at an all-time high of $627.4 billion. This is almost a $100 billion increase over margin borrowing at the end of 2016 -- and more than double ...
SEOUL, Jan. 20 (Yonhap) -- Investors have borrowed a record amount of loans to buy local stocks as the country's stock market has maintained its upward trajectory, market data showed Saturday. The amount of money borrowed to buy stocks, the so-called margin debt, reached 10.77 trillion won (US$10 ...
SEOUL, Jan. 20 (Yonhap) -- Investors have borrowed a record amount of loans to buy local stocks as the country's stock market has maintained its upward trajectory, market data showed Saturday. The amount of money borrowed to buy stocks, the so-called margin debt, reached 10.77 trillion won (US$10 ...
Financial markets are getting interesting again. For the past several years the economy has been kind of a snoozer, growing at a somewhat steady, but subpar 2.0%. At the same time stocks have been on a remarkable run. Passive investing and indexing has become a dominate investment strategy which ...
Treasury yields are on the rise, as the 10-year note yield on Thursday jumped to its highest level since March and the 2- and 5-year Treasury yields hit their highest levels since 2008 and 2011, respectively. This action has sparked talk of the multidecade bull run in bonds coming to an end, with what could ...
Margin debt is a measurement of the amount of money traders on Wall Street have borrowed to buy stocks. According to the New York Stock Exchange (NYSE), traders have been steadily increasing their margin debt levels throughout 2017. As you can see in Fig. 1, traders started the year with $513 billion ...
This is why using margin is so powerful in a rising market and why margin debt in the accounts of the New York Stock Exchange (NYSE) has kept pace with the records in the S&P 500 and the Dow Jones industrial average, reaching an all-time high of $581 billion in November 2017. In a falling market, the ...
Alan Newman, publisher of the Cross-Currents newsletter, reports that margin debt set yet another record of $627.52 billion, signifying the use of tremendous leverage. It also set another record high of 3.2% of gross domestic product, far eclipsing its levels at the 2000 and 2007 market peaks. In other words ...
The roundup, which was published earlier this week, aggregates trends from the global investment banking industry from the throughout the year such as margin debt and trading data. Generally speaking, Q4 2017 was a benign period for investment banks. A lack of M&A activity and volatility weighed on ...
Importantly, don't mistake record margin debt levels as people borrowing against their portfolio just to make larger investment bets. In reality ... This is shown in both the level of debt used to support the standard of living and the relationship between real, inflation-adjusted, margin debt and economic growth.
Margin debt is the embodiment of stock market risk. As reported by the New York Stock Exchange today, it jumped 3.5%, or $19.5 billion, in November from October, to a new record of $580.9 billion. After having jumped from one record to the next, it is now up 16% from a year ago. Even on an ...

The global financial crisis was more severe for advanced economies than for developing countries and the bounce-back has been more vigorous for the latter. e Great Depression was preceded by a margin-debt-fuelled bubble in the US, with private debt blowing out during the crisis and then collapsing.
Advisor Perspectives provided some interesting charts in their November report, showing the growth in margin debt over the last few decades and the total dollar amount outstanding currently. Not only does this support how much risk is present in today's market, but if credit growth were to stall, or unwind, ...
Special antennae that help traders catch upcoming opportunities. Available from the same outfit that sells the soup-cooling spoon (Acme Inc). There is just one more positioning indicator we want to mention: after surging by around $126 billion since March of 2016, NYSE margin debt has reached a new all ...
The following is a summary of our recent interview with Louise Yamada on No Sign of a Market Top, which can be accessed on our site here or on iTunes here. There's no denying that 2017 has been a good year for investors, with most major asset classes showing gains for the year. This time on Financial ...
Margin debt is the embodiment of stock market risk. As reported by the New York Stock Exchange on Wednesday, it jumped 3.5%, or $19.5 billion, in November from October, to a new record of $580.9 billion. After having jumped from one record to the next, it is now up 16% from a year ago. Even on an inflation-adjusted ...
Signs of potential trouble include U.S. equities valuations being stretched while margin debt — money borrowed by U.S. investors to fund share ...
In the chart below, the 2% “danger signal” was something we concocted many years ago, after seeing total margin debt peak around 2% of ...
I'm planning on instituting a more conservative approach to long-term margin use, and will be paying down margin debt steadily until the next ...
"The growth in margin debt has not reached exorbitant levels yet, as was the case just before the 2000s and 2007s market crashes," he said.
U.S. investors are borrowing to buy stocks like NEVER BEFORE. The most recent NYSE data shows that margin debt reached a RECORD ...
Not only was margin debt high, but everyone was talking about investing in stocks - especially tech stocks. I knew the bubble was over when ...
NYSE Margin Debt is an important indicator for US equities as it both reflects sentiment and tracks the amount of leverage and buying power (or ...
NYSE Margin Debt is an important indicator for US equities as it both reflects sentiment and tracks the amount of leverage and buying power (or ...
... including but not limited to free cash flow, EBIT margin, debt to EBITDA, and economic profit. Management believes that providing insights on ...
Since then, however, we have put in place trading curbs, all manner of regulations, such as limits on margin debt, and given the world's central ...
Last week I outlined my concerns over my excess margin debt, and my plan to accelerate my deleveraging via my 3D plan (de-lever, diversify, ...
The NYSE reported that in August, margin debt outstanding stood at just over $550 billion. This is 3x as high as it was in 2009, just after the ...
Wall Street investors have pushed their margin debt levels much higher than in the previous two stock market bubbles. One of the reasons that ...
Prior to those purchases, the clients had no margin debt, and as a result the two retirees "experienced a significant increase in their margin debt ...
At the same time, corporate debt and portfolio cash balances, as well as margin debt, give us ample cause for concern. As equity indices ...
As you can see from the first chart, current margin debt (the red line) is about 20% higher than the prior peak in 2007, even adjusted for inflation ...
NYSE total margin debt @ $551B seems to be worrisome, but is only 2.46% of SPX market cap. US non-financials hold $15T in total debt.
Although it is quite volatile and tells you nothing about margin debt or short interest ratio, the Fear and Greed Index shows the current market ...
High levels of margin debt lead to increased volatility as more people are forced to sell due to margin calls. In January, margin debt hit another record high. The two previous tops were one month and three months prior to the respective 2000 and 2008 ...
The lender will analyze your cash flow, gross margin, debt-to-equity ratio, accounts payable, accounts receivable, EBITDA, and more, so be prepared to answer questions on those topics.
I also like to look at margin debt, or total borrowing in brokerage accounts, as way of assessing speculative fervor. Nominal margin debt recently hit a new record high but I prefer to normalize this measure by comparing it to the size of the economy.
We pointed to the continued rise in margin debt to new all-time highs, the continued fall in equity short positions to all-time lows and the enormous influx of retail money into equities at a year-to-date rate 6x last years all as a sign of a market ...
After climbing for several months, margin debt as a percentage of market capitalization dropped back, but it has since spiked again to a level typical of the past couple of years.
WEST CHESTER, OH, Mar 16, 2017 (Marketwired via COMTEX) -- WEST CHESTER, OH--(Marketwired - Mar 16, 2017) - AK Steel Holding Corporation AKS, -1.32% ("AK Holding") announced today that its subsidiary, AK Steel Corporation ("AK Steel"), has ...
WEST CHESTER, OH, Mar 16, 2017 (Marketwired via COMTEX) -- WEST CHESTER, OH--(Marketwired - Mar 16, 2017) - AK Steel Holding Corporation AKS, -1.32% ("AK Holding") announced today that its subsidiary, AK Steel Corporation ("AK Steel"), has ...
Record levels of margin debt do correspond with lower odds for future market returns, as well as smaller gains by the S&P 500 SPX, -0.13% but the impact isn't strong enough to change market direction, according to Bespoke Investment Group.
Technicals: We're about to enter the buyback blackout period, S&P price momentum is positive, and NYSE margin debt has grown by 14.7% over the past twelve months.
They include the Shiller price-to-earnings ratio, which has been this high only during the dot-com bubble of 2000 and the 1929 market crash.


 

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