http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php
The New York Stock Exchange publishes end-of-month data for margin debt on the NYXdata website,
where we can also find historical data back to 1959. Let's examine the
numbers and study the relationship between margin debt and the market,
using the S&P 500 as the surrogate for the latter.
The first chart shows the two series in real terms — adjusted for
inflation to today's dollar using the Consumer Price Index as the
deflator. At the 1995 start date, we were well into the Boomer Bull
Market that began in 1982 and approaching the start of the Tech Bubble
that shaped investor sentiment during the second half of the decade. The
astonishing surge in leverage in late 1999 peaked in March 2000, the
same month that the S&P 500 hit its all-time daily high, although
the highest monthly close for that year was five months later in August.
A similar surge began in 2006, peaking in July 2007, three months
before the market peak.
No comments:
Post a Comment