On My Radar: Margin Debt, Valuations And Vacation – CMG

On My Radar: Margin Debt, Valuations And Vacation by Stephen B. Blumenthal, Capital Management Group

unt of margin debt in billions.  Note in the bottom section the amount of margin debt is nearly twice as much as it was in early 2000 and much higher than it was at the prior peak in late 2007.  The red line plots the amount of margin debt over time.

What I like about this chart is that it also plots a six-month smoothing line (dotted green line) and shows the performance of the Dow Jones Industrial Average from 1965 to present when the total margin debt is above its six-month smoothing (red line above green line).