February 23, 2021

To gain an edge, this is what you need to know today.

Rising Margin Debt

Please click here for a chart showing the progression of margin debt.

Note the following:

• The table shows that margin debt has been rising.
• Anecdotal evidence is that there is a significant increase in margin debt in momo stocks.  As momo stocks have gone up, the momo crowd has had more margin available to them.  Momo has increased its bets using the higher available margin.
• Margin is a two-edged sword.  It works great as long as momo stocks keep going higher. However, if momo stocks start dipping, many among the momo crowd will get margin calls.