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[nimblebear]

And once again, that's the epiteth of THIS market, at new highs ALL on heavily borrowed money. and leverage is what every investor ought to be worried about today. NYSE margin debt is at an all-time high. Investors are borrowing money to buy stocks. So as the market rallies to new highs, investors are now more leveraged than at any other time in history. History tells us this is a bad thing. In March 2000, margin debt on the New York Stock Exchange climbed to more than $278 million for the first time ever. Then it started falling. Four months later, the S&P 500 peaked above 1,500 and entered a severe bear market. The index lost 45% of its value over the next two years. In July 2007, margin debt set a new all-time high above $381 million. Then it started to fall. Two months later, the S&P 500 set a new record above 1,550. Eighteen months later, it traded as low as 667. This past April, margin debt rose above $384 million – another new all-time high, the first since 2007. True to form, the S&P 500 rallied to a new high last month. But margin debt has been declining since hitting its high in April. If the historic trend persists ... Bye bye stock market.