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Mark Hulbert: Investors Are Heavily Borrowing To Buy Stocks - What That Mean For The Bull Market

TedTed
edited July 2019 in The Bullpen
FYI: N.C. (MarketWatch) — Exuberant investors reacted to the U.S. stock market’s strong rebound in June by purchasing more stocks on margin — a lot more.

That means the bull market is alive and well, according to many analysts who believe margin debt is a telling leading indicator. (Margin debt refers to the use of borrowed money to invest.) But I’m not convinced. My analysis of the historical data shows that margin debt is a coincident indicator — it rises and falls along with the market itself.
Regards,
Ted
https://www.marketwatch.com/story/investors-are-heavily-borrowing-to-buy-stocks-what-does-that-mean-for-the-bull-market-2019-07-23/print
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