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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?


To: DinoNavarre who wrote (10709)12/21/2025 12:18:23 AM
From: Sun Tzu1 Recommendation

Recommended By
DinoNavarre

  Respond to of 10711
 
By default I don't trust Grok (for good reasons), and in this particular case its chart is just too neat and perfect to be taken seriously. So I'd go with my chart.

There are two other charts that are relevant if you want to plot and share them.
The first is margin debt to GDP (think of it as Buffett indicator for margins)
The other, which I would prefer, is the rate of change of the chart I posted (with some smoothing to filter out the noise). That would be the rate of growth in margin vs rate of growth of the stock market cap. When you see margin debt growing much faster than the stock market, the market is likely overextended.