A lot of analysts use the margin dept as an indicator for an upcoming sell offs on the stock market.
One analyse from Mark Schofield, a managing director at Strategic Value Capital Management, LLC show us why we should be very careful for an upcoming serious decline by S&P500.
The next chart shows the percentage growth of the two data series from the same 1995 starting date, again based on real (inflation-adjusted) data.
We can see it clear that before a recession, charts are splitting apart and then there is a sell off and declines by the indexes and increase by margin dept.
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