Borrowing Rush by U.S. Stock Buyers Signals Drop: Chart of Day
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Borrowing to buy U.S. stocks is rising at a pace that suggests investors are too exuberant and share prices are poised to fall, according to Charles Biderman, chief executive officer of TrimTabs Investment Research.
The CHART OF THE DAY shows how the total amount of margin debt, or loans for stock purchases, provided by New York Stock Exchange member firms compares with the Standard & Poor’s 500 Index since a five-year bull market ended in October 2007.