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As Long As The Market Keeps Rising "This" Doesn't Matter
As we noted here, October 2013 NYSE margin debt stood at a new record high of $412.5b (up from $401.2b in September) and exceeded the prior high from April of $384.4b and net investor worth dropped to a record low. However, as BofAML notes, NYSE margin debt and the S&P 500 have +0.76 correlation using a 48-month (4-year) correlation as of October 2013. This is the highest correlation in our data history back to 1964. A positive correlation means that margin debt and the S&P 500 tend to move together; which as they helpfully note means - as long as the market rises, margin debt is not a risk. Better keep BTFATHing, it's the patriotic thing to do.
Chart: BofAML
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It's far more riskier to cross the street than to buy stocks right now. BTFATH!
BTFATH is - ummmm - missing something.
Instead it should be BTFAITH: Buy The Fucking Interim All-Time High - plus it has the word FAITH in it now - copyrite! A little poetic licence is allowed in creative endeavors - hehehe!
As stated, your acronym isn't working correctly.
s/He's fucked up.
Stack on
How bout:
Buy This Fucking Action Into The Heavens.
Its a little bit early for christmas songs, but I think this one is appropriate:
You better not sell
Better not short!
I'm telling you why
Janet Yellen is coming to town
She making a QE list
And doubling it twice,
Gonna find out Who's got junk bonds to buy!
Janet Yellen is coming to town
She Knows when the market nearing a correction
She knows when you're getting ready to short
She knows if you've in deep in debt
So buy for good for goodness sake!
O! You better watch out!
You better not sell
Better not short
I'm telling you why
Janet Yellen is coming to town
Janet Yellen is coming to town
Now if I don't get double digit arrows up with this one. You people are a bunch of scrooges :)
You may repeat, but, unlike history, you do not rhyme.
Of course. It's like your temperature. If 104 is hot, then 107 is smoking good.
The man on the TV said everything was looking good.
I can't see any reason he'd lie to me.
I get it, 5 months of QE is worse than 215 TRILLION in undocumented non-collateralized derivatives exposeure.
I'm surprised the correlation is that low. I would have thought up around .90 by now.
Get long and keep 1/3 cash or equity for TZA for when the market tanks. Why is this so hard? I
Indeed. TZA and FAZ, here have some crack while you're at it...
cue "American Psycho...the mini series." I think Arnold Schwarenegger (sp?) said it best when as Terminator Arnold he said "I need a vacation." I mean seriously...how many betazoids does I take before you wind up thinking you're the one with the problem? "stop the ride I want to get off."
Are we there yet?
NYSE Margin Debt is reported by NYSE Members. Want to see who is trading on margin?
https://usequities.nyx.com/membership/nyse-and-nyse-mkt-equities/directory/all
Think these masters of the universe are going to be caught out? If you are trading on margin, and you don't know who the sucker is, then you're the sucker.
" as long as the market rises, margin debt is not a risk"
And if you jump out of an airplane without a parachute, as long as you fall, sudden violent deceleration is not a risk.
or is it "until a violent deceleration occurs" there is no risk.
Just enjoy the fall.
For the semantics, we have lawyers.
SunRise,
Your statement is less deceitful. You will not be successful as a financial advisor.
Oh man this doesn't end well.
I'm off to dump my remaining holdings...
Cheer up, it get's worse.
Yah I remember that slogan not so long ago, my wife's uncle 300k margin account came do, I think he shit himself first
Never underestimate the staying power of the biggest money printer in the world.Look at the staying power of Japan.We're just getting warmed up a little in America,come on.They can't taper,and if they do it will be so minor that when any drop occurs,they'll step in even bigger.My guess is that a new joint program of some unknown type will come into the picture joining onto the QE program.It's QE infinity until we get inflation going big.Their theory is that they have a lot of experience with inflation and can control it better.So they say.Until we see it though,it's print,print,print.
The American way, it doesn't matter until it matters then blame someone else!
leverage up
deleverage down