Mind The Margin Accounts: Investor Net Worth Plunging At Record Pace

Continuing on with the valuation theme, there are a couple of additional “market” indicators that are also at or above dot-com levels. While not strictly a valuation technique, the level of margin debt and really customer net worth gives us an insight into one aspect of multiple expansion. Margin debt for FINRA accounts (which includes both NYSE and what used to be NASD members) has been somewhat flat since earlier in 2014.

However, the balance of net worth has proceeded further negative, doing so at a pace that far exceeds anything ever seen before. (more)
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