Margin Debt Simply Reflects Stock Prices: BTIG
The growth in margin debt is once again on people’s minds, reaching new all-time highs this year more or less in line with the S&P 500, but even if the buildup in debt is dangerous it doesn’t tell you when the next market correction (or crash) is coming.
“Margin debt, to the extent its anything, is a coincident indicator of broader market strength/weakness and reflects the growth in stock prices more generally,” writes BTIG analyst Dan Greenhaus.
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