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Technology Stocks : Semi Equipment Analysis
SOXX 303.84+1.3%4:00 PM EST
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To: Elroy who wrote (68734)6/3/2015 11:16:12 AM
From: Return to Sender2 Recommendations

Recommended By
Donald Wennerstrom
FJB

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Elroy, margin debt is at a record high. I am sure this data is collected electronically from brokerages that allow investors to borrow to buy securities in margin accounts. Most accounts outside of retirement accounts allow the use of margin to buy stocks and options. The data collected does not get reported until long after the previous month is over. That's why the latest data is from April:

nyxdata.com

Past peaks of record margin borrowing have corresponded with major market tops. That said the previous market tops only took place after margin debt began to fall from the previous peaks. As long as margin debt is increasing investors are borrowing more money to buy stocks which can keep the stock market rising.

There is ample evidence that the retail investor is buying shares in stocks at levels not seen at anything other than past market tops.

wellscap.com

That said there remains few alternates for investors to find a decent return rather than stocks. I believe we are in a bubble but whether this bubble should be compared to 1997, 2005, or 1999 and 2007 remains to be seen.

Bubbles can expand indefinitely. One thing is certain they always pop.

RtS
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