Margin Debt, part II

We mentioned earlier the recent rise in Margin. Have a look at the following chart:

NYSE Member Firm Margin Levels

Nyse_margin
Sources: Bloomberg, RR&A

The raw numbers are not what actually matter — and adjusting for inflation isn’t significant.

The reason Margin matters is that it is potentially revealing of extreme sentiment and/or speculation (margin clerks can do major damage in a downturn).

There are a few ratios I would like to identify and convert to oscialltors relative to Margin:

Total Margin / Total Market Cap

NYSE Margin / Account Assets

Margin / Trading Volume

Total Margin / Market Volatility

The idea would be to test these versus historical tops and bottoms . . .

Category: Investing, Markets, Psychology

Margin Debt Up 22%

Category: Investing, Markets, Psychology, Technical Analysis

Media Appearance: Nightly Business Report (1/17/07)

Category: Media

Econo-Day Calendar

Category: Economy

The Sordid Truth About Inflation

Category: Data Analysis, Federal Reserve, Fixed Income/Interest Rates, Inflation, Investing, Markets

Media Appearance: Kudlow & Company (1/16/07)

Category: Media

Apple iPhone/iPods

Category: Digital Media

Global IPOs 2006, by dollar volume

Category: Investing, Markets

Earnings Season Begins

Category: Data Analysis, Earnings, Investing, Markets

Countries GDP as US States

Fascinating stuff: Carl Størmer points us to this amazing map of the United States. Each state’s economic output is analogized to another country’s GDP. click for larger chart: Notable omissions: U.K., Japan, Germany, China, Russia, Italy. I cannot vouch for the precision of this, but by eyeball, it looks about right. Carl adds: “When seeing…Read More

Category: Currency, Economy, Finance, Valuation