Can Margin Debt Give Us A Clue On Market Direction?: "bottoms in the market occur when there are positive net credit balances"
'via Blog this'
"...By the time the bottom of the decline was reached in March of 2009, positive net credit balances had ballooned to almost $200 Billion. Surprisingly, after investors had been wiped out twice in a single decade, they came storming back to the casino flush with cash as the Fed, due to the introduction of Quantitative Easing, which removed investment risk from the markets. Investors scrambled to lever up their portfolios for a third time. This time margin debt didn't quite achieve its previous peak but quickly surged to $330 Billion. ..."
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