Stock Market Danger Signals – Margin Debt

You may not realize this, but lots and lots of investors go into debt to invest in the stock market – especially small investors. Small investors are generally very emotional investors. They get swept up with the ‘thundering herd’. If it looks like everybody is investing in Farm Tractor stocks, they go and invest in Farm Tractor stocks. If everyone is investing in Moon Exploration stocks, they jump in and buy with the ‘thundering herd’. And, they tend to jump in with both feet and lots and lots of margin debt. So, you know when the ‘small investor’ is getting … Click here to read the rest…