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The combined surge of both visible and “shadow” leverage suggests that investors have once again thrown caution to the wind. While margin debt is NOT a leading indicator of future declines, it is the fuel that magnifies the inevitable reversion as forced liquidation occurs. 

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So the questions and answers that are currently being debated are valid, but the issue is not really whether there is a ‘top’ forming or not. The question is: if there is a bust [bear], how big [deep] will the drawdown be in the market and do you have a strategy that will see you through the blow-out?

The 2008 bear was pretty brutal and pretty much everything dropped far further than anyone expected.

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