NYSE margin debt hit new all-time high in March. Normalized
to GDP, the margin debt is still below the February 2015 peak. In all of last
year, the margin debt really has not gone anywhere and the margin relative to
SP500 has actually declined. This pattern is similar to prior stock peaks where
the margin debt relative to SP500 declined at market top. I attribute this to
professional investors lowering their exposure while dumb money continues to
invest through the peak.
No comments:
Post a Comment