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margin debt

Revisiting Dot-com Exuberance

By |2013-05-08T20:52:16-04:00May 8th, 2013|Markets|

Our friend and colleague Eric Hull pointed out that NYSE margin debt was just a hair below record levels in March (the latest figure available), at $379 billion. Eric also noted that the past two peaks in NYSE margin debt have corresponded with 3-5 months of additional “exuberance” (given the persistence of QE’s in this climate, I would argue that [...]

How Much of Equity Prices Is Real?

By |2013-03-05T16:38:12-05:00March 5th, 2013|Markets|

The DJIA is at an all-time high, but how much of it is “real”. Earnings growth dropped to negative two quarters ago, so that removes some of the fundamental appeal of a new high. Comparing economic parameters to the last time markets were at these levels does not offer a favorable context either. There are ways to judge “extreme” valuation [...]

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