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Stocks on Speed: Leverage Spikes, As Does Risk Of Crash (Look at that Insane Chart!)

By on March 31, 2014
stocks on speed

Wolf Richter of the Testosterone Pit has a great article about the leverage spike we are seeing in the market.

Margin debt is a crummy predictor of a crash. But it has a bone-chilling habit of peaking right around the time stocks do crash. In the last fifteen years, it spiked three times: during the final throes of the bubbles that imploded in 2000 and 2007; and now.

Not a good sign for the markets.Leverage spikes show that people are getting greedy and stupid.

Read more here… http://feedly.com/e/msKBHTT5

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