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We’ve Seen This Much Margin Debt Just Once Before

Published 12/30/2013, 03:52 PM
Updated 07/09/2023, 06:31 AM
NYSE Margin Debt Over Time
Individual investors' margin debt/negative net worth is now hitting levels only seen at the height of the tech bubble back in 2000.

Doug Short produces outstanding work and he does it again as he keeps investors updated with a series of margin-debt charts, reflecting levels rarely seen in history.

My take on this is that It doesn't matter, until it does!

Big Impact
In the past -- when margin debt mattered -- the impact was very big on the markets. Margin debt can remain high for a long time, But when investors finally do unwind these high debt levels -- if history's any guide -- it will have an important impact, indeed.

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