<<<<Correct. Last Month the NYSE reported 181.9 billion in outstanding margin debt as of the end of April. The highest level in history. The number was 25.5 billion higher than March. This was the largest 1 month increase of all time. Figures for May should be released shortly.>>>>>
Now the real question is , is the 181.9B the highest in absolute dollars or as a % of total market cap?
<<<Last Week the Fed released its Flow of Funds Data: Equities as a percentage of total financial assets hit new record highs for both institutions and households.>>>>
This is not surprising nor do I believe significant. But interesting nonetheless
<<<Household debt as a percentage of disposable income also hit a new record high of 96.3%.>>>>
You know, this one is troubling, not so much as a market indicator but rather knowing the old adage "last hired, first fired", When the economy does slow, and clearly AG and company have said straight up that's their intent, the newly hired, with their new cars and credit cards are going to suffer the most because they'll be out of jobs. It's the credit newbies that drive that figure. Anyone with experience has learned how to manage debt.
I have financed and owned a retail business from the late 80's to the present, or peak to trough, and back to what I believe may be the next peak, we'll have to wait and see.
D.H. |
