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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: techtrader73 who wrote (91229)3/30/2017 5:29:28 AM
From: GROUND ZERO™  Respond to of 220775
 
It does...

GZ



To: techtrader73 who wrote (91229)3/30/2017 8:58:27 AM
From: GROUND ZERO™1 Recommendation

Recommended By
mary-ally-smith

  Read Replies (1) | Respond to of 220775
 
Margin Debt Surged to 58-Year High at Trump Rally’s Peak

The cycle is turning, right before our very eyes. In recent months, we’ve found a substantial amount of evidence in capital markets pointing to credit formation reaching a saturation point. We’re seeing surging defaults in commercial real estate, credit card receivables and even prime auto loans. The icing on the credit cake is margin debt’s historic rise. Equity bears have been talking up this leverage class since 2014, but this time there’s far more collateral evidence of easy credit saturation.


Stocks bought on margin:




“A record $530 billion was extended as credit by brokerages for stock buying at the end of February as the post-election rally peaked, according to data released Wednesday by the New York Stock Exchange. While some investors interpret such speculative buying as signals of imminent market reversals, Michael Shaoul, chief executive officer of Marketfield Asset Management, says that’s not the case. He notes that the current pace in equity credit growth is nowhere near where it was in 2000, and the cost to borrow only slightly exceeds the 1.97 percent yield that S&P 500 companies offer as dividends.”

thebeartrapsreport.com

GZ