Wednesday, May 23, 2018

Mama Mia!
That’s a lot of
Margin Debt!
NYSE Investor Credit

DYI:  Just eye balling the level of margin debt and no telling how many market participants have borrowed money from other sources to purchase stocks.  When the bubble intersects with the pin the balloon world wide central bankers have inflated will let out with one gigantic fart [OK I said it, one big stinky fart] stocks will decline over many months 60% to 75%.  Think this without president?  Stocks declined from 1966 to 1981 a cumulative return of negative 10%!  Or from 1929 to 1932 for a cumulative return of negative 80%!  When the next recession hits I’m anticipating negative interest rates with a high probability of 5 year or less T-notes with negative yields.  A lower possibility, if this turns into a deflationary smash, then 10 year T-bonds will go negative.

Bottom line:  This is an awful time to purchase stocks!
 DYI

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