A massive and rather rapid stock market decline is coming later this year. And while we won’t have a crash, considering the amount of margin debt out there, quite a few people will get wiped out. If you would like to find out exactly when this move will develop, to the day, please Click Here.
The chart above is scary for two reasons. First, the amount of margin debt out there is truly staggering. It is 33% higher than it was at 2000 tech bubble top and 25% higher than it was at 2007 mortgage finance bubble top.
And we are expected to believe we are not in a bubble and the stock market is climbing the wall of worry? Yeah….right.
Second, while the margin debt is surging higher off of its 2014 lows, the stock market hasn’t gone anywhere over the same period of time. That should be a massive red flag to anyone who is paying attention. That means the market is stalling despite this surge in margin debt, corporate buybacks, capital inflows, M&A and overall bullish confidence. Not a good sign.
Scary Amount Of Margin Debt Points To A Violent Market Correction Google