Related Topics
Stocks , US Markets
Share This Page         

Fast-Rising Margin Debt Screams an Even Faster Reversal Ahead

Today's U.S. stock-market margin debt is 47% higher than the amount before the 2007 DJIA top

by Bob Stokes
Updated: November 17, 2017

 


U.S. investors are borrowing to buy stocks like NEVER BEFORE. The most recent NYSE data shows that margin debt reached a RECORD $559.6 billion in September. But -- this tells only part of the "leveraged to the hilt" story ...

Can you imagine using 100x leverage in the stock market? This is NOT a fantastical notion. Here's a reminder of an Elliott Wave Financial Forecast quote from the video:

Many hedge funds skirt the Regulation T provision limiting the amount of credit that investors can borrow to 50% of the purchased asset’s value. “Little by little,” hedge funds have gotten around Regulation T, states derivatives trader David Von Leib. With the help of “increasingly sophisticated alternatives,” Von Leib reveals that leverage up to 100-to-1 is now possible. 

Massive leverage can be a blessing when a financial market is going an investor's way -- but an awful curse when the market turns.

Now is the time to learn what our Elliott wave analysts are saying about DJIA's chart pattern. It's analysis you don't want to miss.

Learn about the risk-free trial to our in-depth Financial Forecast Service -- just below.


Elliott Wave International’s Financial Forecast Service

All month long, FFS shows you the patterns in U.S. stock indexes, bonds, gold, silver, the U.S. dollar, as well as market psychology and cultural trends. We show you where the trend is now, and when prices should turn -- specifically, we show the pattern at multiple degrees of trend, with precise risk/reward calculations. If you have fewer surprises, you can be better prepared.

Here’s how it works:

 

1

Subscribe now and read the current issues within FFS.


 

2

Fine-tune your portfolio plan.


 

3

Relax. Watch the markets with your targets in mind.




Your Financial Forecast Service Team Helps Put YOU in Control of the Market’s Trends and Turns


Your Financial Forecast Service guides -- three of the best-known market analysts in the world:

  1. 1. Robert Prechter, Author of 16 market-related books, New York Times Best-Selling Author and Editor of Elliott Wave Theorist
  2. 2. Steven Hochberg, Editor of the Short Term Update and Co-editor of The Elliott Wave Financial Forecast
  3. 3. Peter Kendall, Author of The Mania Chronicles and Co-editor of The Elliott Wave Financial Forecast

As featured in:



Here's what you get with the Financial Forecast Service


Every Month

At the end of each month, you get a 30-60 day look ahead at the markets. Elliott Wave Financial Forecast lays out expected trends and turns in stocks, gold, USD and bonds.

Three Days Per Week

At market close every Monday, Wednesday, and Friday, you get the Short Term Update, alerting you to what’s changed and what’s upcoming in the next several days.

Latest Research

Every month, Robert Prechter sends you his latest research about waves of social mood in the markets in the Elliott Wave Theorist, so you always know the full picture.


You can be ready for risks and opportunities that catch most investors by surprise


Risk-Free, Start Your Subscription Now

$59

for 1 month of unparalleled market insights