“See the next chart, which tracks the S&P 500 and margin debt, the amount of money investors are borrowing against their shares of stock to buy more stock. The chart seems to show that when investors are optimistic enough to use leverage to invest in already-risky stocks, then the good times have pretty much run their course and something nasty is imminent. If recent history is our guide, it is now time to either take some money off the table or short the hell out of the big indexes – or whatever else you like to do when the market looks overbought. But this conclusion is only valid if we’re in the same stage of the credit bubble as during those two previous sentiment peaks.”
Related posts:
Don’t Let the Fed Pick Your Pocket
"They Kidnapped Our Child": Why CPS Needs Transparency Now
The FED’s Dilemma
U.S. Military 'Jade Helm' Civilian Roundup Drill Footage
Cancer Patient Loses Doctor, Treatment Delayed Due To ObamaCare
Inside the Chinese Bitcoin Mine That's Making $1.5M a Month
Government-Run Bridges: Guaranteed Erosion
Japanese police ask ISPs to block Tor
May 2014 High Alert Trends & Sector Report
Ukrainian Officials Targeted Trump, Helped Clinton In Election
How to Generate Income From the Needs of a Hungry World
Microsoft remotely deleted Tor-based botnet from 2 Million Systems
Law enforcement accused of ‘policing for profit’
Three Strikes and You're Out: After 20 Years, Is the Law Working?
MSNBC Blames Boston Bombing on “Deeply Racist” Alex Jones