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Margin Debt vs S&P

Margin debt and specifically net credit balances of brokers as reported by the NYSE should at least warrant some consideration.  When investors are extremely bullish, and pushing the edges of speculation, the “risk” of leveraging a portfolio is easily dismissed.  The chart below shows the positive and negative net credit balances relative to the peaks and troughs of the S&P 500.


While these are only two d

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