US stock adjustment: rebound from the rapid surge in dangerous credit balances
On April 13, 2021, in Diamond Online, in an article titledWhat is the “Archigos incident” that shakes the market?, it stated that “a rapid increase in margin debt is a dangerous sign of a stock price crash.”
To reiterate,
During the IT bubble of 2000 and the subprime bubble of 2007, the year-over-year increase in margin buying in the United States exceeded 60%, and this time too it seems it will exceed 60% in April 2021 (in fact, it reached +71.6% year over year in March). Looking at past examples, this is a dangerous sign of an impending stock price crash.
And I thought that remediation in stock prices would begin around September or October about six months later.
The beginning of the S&P 500's correction may have started this January, but the Nasdaq did so in November of last year. It came later than I expected, but I believe the market has entered a correction.
