Thursday, October 31, 2013

NYSE margin debt at record levels

Investors in the US stock market are more leveraged than ever before. When the bear market of the 1970's was over back in 1980 the broader stock market was priced at about 20% of the value of GDP, whereas now it is priced at about 120% of GDP.



















Source: Bank of America / Merrill Lynch

This tell you about the sustainability of a continued rise in margin debt levels.

Geir Solem

Elliott Wave Technician
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