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Technology Stocks : JDS Uniphase (JDSU)

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To: SL2 who wrote (6383)2/16/2000 10:54:00 PM
From: StockHawk  Read Replies (1) of 24042
 
>>any insight into how much the margin debt equates to on a percentage basis? <<

Margin in the US currently represents about 1.6% of total US market cap. That is on the high side for the past decade, and is close to the high reached before the 1987 crash. However, it is far less than in 1929 when it reached 30% and caused big problems.

While the absolute margin level is not alarming, it is the recent spike in margin (from around 1.25% to 1.6%) that has caused concern. Evidence suggests that a relatively small number of market participants are highly leveraged and the concern is that a correction that results in margin calls could hurt not just those on margin.

StockHawk
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