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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: pater tenebrarum who wrote (60017)9/2/1999 8:03:00 AM
From: PaperChase  Read Replies (1) of 86076
 
>>margin debt stands at approximately $180bn., needless to say, that's a record high and a truly staggering sum. if the correlation depicted in these charts continues to hold sway, we will have scores of people jumping from buildings...<<

Did they jump last fall when the indexes collapsed? No! Margin debt at a high is a useless number. To gain perspective, you must look at this number as a ratio whereby margin debt is a numerator and another statistic is a denomoninator, such as size of market, growth of market, etc.

I'm sorry but I must now fire you as my investment consultant. <g>
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