1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Peak Margin Debt and Subsequent Returns

June 03, 2013 | About:

Margin debt in the United States — money borrowed against securities in brokerage accounts — has risen to its highest level ever, at $384 billion, surpassing the previous peak of $381 billion set in July 2007 according to New York Times Business Day’s Off The Charts: Sign of Excess?. Margin debt as a proportion of GDP is not quite yet at the peak set in 2007, but it has exceeded 2.25% only twice previously in the last 50 years–2000 and 2007. The bottom panel shows that each of those instances was followed by a large drawdown:

nyt-margin-debt.jpg?w=500&h=584

Read Off The Charts: Sign of Excess?


Rating: 2.0/5 (1 vote)

Comments

Please leave your comment:


More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by


User Generated Screeners


alexbernal0Euclidian2
alexbernal0Euclidian
alexbernal0insiderOwners2
alexbernal0insiderOwners
hphan17Growth stock
pbarker46Cdn E & P
DANGORDONRETURN ON EQ 4-29-17
erilasDividendstrategie
HOLKLSUTake 5 Group Low Downside Cont
New MoonSmall Cap High ROIC
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK