Great catch. But I think the surge in the ratio is more due to a sharp drop in the denominator. To me, the margin debt is more like a lagging indicator, because when people's risk appetite rises, they are willing to borrow debt for investment(Gambling). Once the economy declines, people immediately refuse to take on any risky investments, so the margin debt will also decline.
Great catch. But I think the surge in the ratio is more due to a sharp drop in the denominator. To me, the margin debt is more like a lagging indicator, because when people's risk appetite rises, they are willing to borrow debt for investment(Gambling). Once the economy declines, people immediately refuse to take on any risky investments, so the margin debt will also decline.
Indeed, great take Colin, thank you.
P.S. I will update this report soon as it was quite requested. Cheers!
I keep telling the same thing for a while. Thanks to show this with great charts!
Good internal dialogue. Welcome.
Some will get ruined by the margin debt, but system wise, it's not a systemic issue imho, at least not for now.
Like he said....margin, whisky and/or women are the way to ruin.
Indeed, that's about it :). The saying is: Leverage does it quickly while Ladies & Liquor take longer but do the same too ;)). Cheers!