Should Investors Fear Margin Debt?
- 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.
The information contained in this presentation does not purport to be a complete description and is intended for informational purposes only. Any opinions are those of the content creator and not necessarily those of the named advisor(s), JWC or JWCA. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.