This Disaster Signal Has Only Been Triggered 3 Times In History

"...It's All In The Margin – Monday morning, our friend, Peter Boockvar, over at the Lindsey Group, sent out the following email:

 

NYSE margin debt rose to another record high in February to $465.7b, up from $451.3b in January. The absolute level though doesn’t provide perspective and its why I believe measuring it against GDP is more relevant. It is now at 2.7% of nominal GDP, up from 2.6% in January, exceeds the level of 2.6% seen in July 2007 and is just below the record high of 2.8% in March 2000. At least in the S&P 500, to use one index, the $21b increase in margin debt from December 31st to February 28th brought just a .6% rise in the index vs the $36b increase in margin debt in January/February 2013 which coincided with a 6.2% gain over those two months last year. This data doesn’t tell us where markets go in the very short term but does say a lot about the leverage that is in the market that has helped to get us here."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/1_This_Disaster_Signal_Has_Only_Been_Triggered_3_Times_In_History.html