NYSE margin debt hit $379.5B in March, a 28% Y/Y increase as investors borrow money to buy into...

NYSE margin debt hit $379.5B in March, a 28% Y/Y increase as investors borrow money to buy into what has become a famously resilient rally. Borrowing to buy shares is of course one sign of unbridled optimism, although some believe levering up makes sense in the current environment. The last time margin debt hit $380B: July 2007, the same month S&P and Moody's marked the beginning of the crisis by downgrading hundreds of RMBS.
Comments (5)
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
    ugh, I hate this market, makes it hard to hold value investments when the rest of the market is like on cocaine or something. You know it makes sense to sell, but the stock's value is still there. I guess its covered call time..... :'(
    9 May 2013, 11:29 PM Reply Like
  • Joe2922
    , contributor
    Comments (479) | Send Message
    BlowOff Rallies like this one, based on history, suggest there is no way to calculate the top in price or time. If you draw a trendline from the 2000 and 2007 highs, it stops at S&P 1600 and DOW 16,000. These unique charts from SA blogger show when to trade the trend and when to trade contrarian, right now following the trend is the way to go:
    10 May 2013, 08:01 AM Reply Like
  • justaminute
    , contributor
    Comments (1624) | Send Message
    Don't worry, it's different this time.
    10 May 2013, 12:15 AM Reply Like
  • nightfly
    , contributor
    Comments (1015) | Send Message
    Exactly, trust big Ben, he'll bail you out: but only up ~2-3 billion per day. And each QE has worked so wonderfully...that's why we have QE4ver!
    10 May 2013, 01:04 AM Reply Like
  • David S. Batchelder
    , contributor
    Comments (14) | Send Message
    Yes, funny money. It all works until it does not. They the elites know the charts, know what they tell their minions to say to the people and the professionals. They will push it up past the trend line to suck more in. Said the spider to the fly. Illusion, good one though. Hate to stay in hate to get out. Get out in June. Why, because they are punishing the so called sell in May and go away crowed. So they can feel the gut wrenching feeling of missing the last dollar. What is the dollar worth. If the margins are list large, the crash will be that much more painful. Banks are also in the market, leveraged 100 times what is listed. Remember that. They are lending on the money that do not have or is even in production yet from Benny boy. The boy printer. Say, 850 trillions worth.
    12 May 2013, 10:57 AM Reply Like
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