You can find a much more detailed analysis on the subject matter here….
NYSE Margin Debt Falls Again: More Confirmation of a Major Market Turning Point Last Year?
The chart above is truly stunning. As most things in today’s FED induced “bubble everything” financial environment. For our purposes we have to concentrate on two things.
- Margin debt is now in a clear downtrend. We saw similar formations at 2000 and 2007 tops.
- Just stop for a second and think about how massive today’s imbalances are. 2015 margin debt peak was about 40% higher than 2000 and 2007 tops. I am sorry, but my vocabulary is limited to only one word……insanity.
To conclude, we are witnessing a bubble of historic proportions. Not only in margin debt, but in the over equity markets. As has been discussed here so many times before.
