Thought for the Week -2/13/2017

Thought for the Week -2/13/2017

Should Investors Fear Margin Debt?

Synopsis:

    •  The margin debt story is viewed by some as a predictive indicator for a future equity market crash.
    • Margin debt can exacerbate a sell-off, but there is no statistical evidence that margin debt levels can predict an equity market decline.
    • Although the use of margin debt is never recommended for individual investors, ignore the fear mongering around such a meaningless data point.

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