I am normally bullish on markets, but recent trends such as this are getting me to get defensive. Surveys show people are bullish for 2014; I am not.
That’s insanity.
Gambling.
Why does this guy call "Net Credit Balance" net worth?
Didn’t that happen in 1929?
Well, if anything can call a top, this news is definitely on the mark. As the market begins to slide, those whose equity falls below the margin requirement get a “margin” call. That means either show up at the office with some cash or marginable securities or we will close out sufficient securities to make your “call”. When such margin calls become commonplace, the sells feed on themselves as more holders get the calls and the markets really tanks.
If you are not on margin sit back and enjoy the show. The high margin levels and the optimism of the “analysts” is a perfect storm of hope being dashed by reality. Full of hope for making many dollars squashed by getting left with the change.
The Stock Market is pumped up by artificial money which is really just the Federal Reserve moving numbers on iPhones and computer screens. What could go wrong?
Bubble, bubble, bubble. Let the games begin.