{"id":9313,"date":"2016-01-07T15:35:26","date_gmt":"2016-01-07T20:35:26","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=9313"},"modified":"2016-01-07T15:35:26","modified_gmt":"2016-01-07T20:35:26","slug":"high-margin-debt-712","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=9313","title":{"rendered":"High Margin Debt (7\/12)"},"content":{"rendered":"<p><span style=\"font-size: medium;\"> Margin debt is dollar value of stocks held above and beyond the value of a portfolio. So if a $100K portfolio has $110K of stock, it\u2019s said the investor is $10K on margin.<!--more--><br \/>\n<\/span><br \/>\n<span style=\"font-size: medium;\"> Margin debt grows as investors become more optimistic. In-and-of-itself, it\u2019s not a bad thing. But if the market heads south, losses grow faster, so the unwinding of built up margin can lead to big and sustained downtrends. The Financial Crisis unwound like it did, largely because of all the margin and leverage that was in the system. <\/span><br \/>\n<span style=\"font-size: medium;\"> Margin debt has been high for a long time, so obviously the market isn\u2019t sensitive to its level. But if some of this needs to be unwound, a correction could get ugly. <\/span><br \/>\n<span style=\"font-size: medium;\"> Here\u2019s a chart showing margin debt to GDP. <\/span><br \/>\n<img src=\"http:\/\/leavittbrothers.com\/blog\/i\/margindebt010716.png\" alt=\"\" \/><br \/>\n<span style=\"font-size: medium;\"><strong>Agree\/Disagree? Comment below. And click <a href=\"http:\/\/www.leavittbrothers.com\/email-subscribe.cfm\">here<\/a> to join our email list to get reports just like this sent directly to you.<\/strong><\/span><br \/>\n<img loading=\"lazy\" src=\"\/images\/space.gif\" border=\"0\" alt=\"\" width=\"728\" height=\"1\" \/> <a rel=\"nofollow\" href=\"http:\/\/www.leavittbrothers.com\/redirect.cfm?affID=5230\"><img src=\"http:\/\/leavittbrothers.com\/banners\/lb-468x60-1.gif\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Margin debt is dollar value of stocks held above and beyond the value of a portfolio. So if a $100K portfolio has $110K of stock, it\u2019s said the investor is $10K on margin.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/9313"}],"collection":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9313"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/9313\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}