"I don't want to hear about it."During a mania, "no prudent professional is perceived to add value"
By Elliott Wave International
"I don't want to hear ab
The market has a way of often fooling most investors. For example, these investors are bullish at tops and bearish at bottoms. Take a look at a chart which reveals a record reading “by multiples.”
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So, the current bull market
will end sooner or later.
The prior two bull market tops occurred in the years 2007 and 2000. One of the characteristics of each of those tops was investors’ ramped up use of margin. In other words, market participants were borrowing heavily to buy stocks.
This can work out well until stock prices tumble. Then come the “margin calls” or demands from their brokerage firms to increase the amount of equity in their accounts. Investors who lack sufficient cash to deposit into their accounts are often forced to liquidate securities quickly, which can result in big losses.