Semi Equipment Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis

SOXX 314.52

-0.6%

Dec 11 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Return to Sender who wrote (87486)	10/12/2021 9:47:34 PM
From: Sun Tzu	Read Replies (1) of 95572

I think you misunderstood what I was saying. A "healthy" level of of margin is one that is within the norm for the stock market. It helps the stocks move up without risk of causing a crash. By itself, margin in the stock market is no more destructive than a mortgage is to the real estate market. Margin is always taken against the stock market. When the stock market is high, so is the margin. That is no more alarming than saying that the mortgage against a $10M house is much higher than the mortgage for a $500k house. Of course it is. So long as margin grows at about the same rate as the stock market, then it is as normal as taking on higher debt to buy a bigger house. It only becomes a problem when margin grows much faster than the stock market. That would be the equivalent of taking on an excessive and disproportionate amount of debt to be flipping houses. But we are not there. PS. My broker warns that while you are still in margin, you are too close to the edge. And the minute you go above margin, they close the position. So you are right, I have never had a margin call because because they don't issue one ;)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next