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Margin Debt Returns

July 29, 2014

We all know leverage and debt are helping to push the markets higher almost every week. This post shows the extent to which it is happening. If margin debt drops for one month, so do the markets. However when it picks back up we see the market parallel the move. Here is a chart used to drive that picture home.

ABOOK July 2014 Magin Debt Flat Russell 2000

While I obviously do not think this can continue forever, policy makers have shown no intention of slowing the issuing of further debt to “help the economy”. This is one of a number of reasons that I continue to believe something significant will have to happen to the US dollar before a major correction occurs.

Click here to read the full article.

Discussion
6 Comments
    cfs
    Jul 30, 2014 30:15 AM

    OFF TOPIC, but worth listening to the whole hour:

    http://www.trunews.com/Audio/7_29_14_tuesday_trunews2.mp3

    The untold story of what is really happening in the Middle East to Christians.
    I remind folks on this blog I am neither Christian or Jew, nor Muslim.
    But I do find Islam intolerable. (A throwback to 14th century civilization or, rather, lack of civilization.)

    Jul 30, 2014 30:23 AM

    Islam intolerable? Same thing happend after andalusia/spain falls … the isabella troops forced the muslim to embrace christian or be killed. And there are some of melaka, malaysia people being forced by the portuguese when melaka was colonalized by them…. and many places in philipines … please be fair

    Jul 30, 2014 30:24 AM

    By the way… intolerable… is for your own good … haha … less probability going to hell …

    Jul 30, 2014 30:28 AM

    And not only the spanish and portuguese are extreme intolerable towards asia people that they colonalized… they stole thousands tonnes of gold from these countries… thats why they still have most of the gold now