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Margin Debt/Negative net worth of individual investors is now hitting levels only reached 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. (see here)
My take on this….“It doesn’t matter, until it matters!” In the past when margin debt mattered, the impact was very big on the markets. Margin debt can remain high for a long time…when investors do unwind these high debt levels, if history is a guide, it will have an important impact.