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You have to survive

You have to survive
Every day is a battle, survival is rule #1

Thursday, September 10, 2015

Margin debt vs GDP

I read an article posted by trader Louise Yamada which showed a nice chart of margin debt as a % of GDP.  it would peak really high before each market crash, especially in 2000, 2007 and right now in 2015.

Overall it was a decent article.  The margin debt chart was beautiful from an objective perspective.  Like watching a thousand venemous baby spiders hatching from their egg sack.  Even if it scares you, it is to be respected.  I have found many other reasons for a big pending drop in equities but this adds to it.  If you are planning on buying heavy in about 6 months, you are in a good position.  Thanks Louise.

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