A reliable stock-market indicator is rolling over, and its a 'warning' sign for investors
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- Margin debt has seen a steep decline from its record high hit earlier this year.
- That's a warning sign for US stocks, according to a new report from Bank of America Merrill Lynch.
- This measure has proven to be something of a solid stock market indicator, particularly around notable selloffs during the dotcom bubble and the financial crisis.
Margin debt hit a record high back in May. It's gone mostly downhill from there. The notable decline is a negative development for US equities, according to a new report from Bank of America Merrill Lynch.
Margin debt, or the debt investors take on against their portfolios, recently slumped to its lowest level of the year as stock markets' recent carnage has accelerated. This measure of risk has proven to be a somewhat reliable leading indicator for the stock market.See the rest of the story at Business Insider
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