Sentences with phrase «when margin debt»

You have to wonder when margin debt is high — short - term investors chasing the market, and Warren Buffett, Seth Klarman, and other valuation - sensitive investors with long horizons sitting on piles of cash.

When margin debt spikes, it's sometimes followed by a sharp market decline.

There have only been four times since the turn of the century when margin debt pulled back by 6.7 % or more — April 2000, August 2007, May 2010 and August 2011.

When margin debt peaks and then begins reversing itself, though, severe stock declines have followed.

Look how the market immediately crashed nearly 23 % when margin debt went vertical in 1987.

Not exact matches

This would sharply enhance growth rates during the expansion phase, much like margin borrowing enhances returns when market prices are rising faster than the debt servicing costs, but at the expense of sub-par performance once conditions reverse.

It is difficult to understand why the record burden of consumer debt will be impervious to a rising unemployment rate, particularly when companies are facing a substantial acceleration in wage inflation in recent months as they try to shore up profit margins - making substantial new layoffs inevitable.

«Whether it is a company running up debt to pay for expenses, or a person borrowing to buy stocks on margin, the borrower is giving someone else the right to say when the game is over» Chris Browne

When times are good, sales ticking higher, margins expanding and cash flows strong, only the advantages of leverage are visible - higher returns on equity, faster growth rates and an enhanced benefit to stock holders as debt is repaid.

Taking into consideration the fact that there is just two other circumstances when the debt / GDP NYSE margin had increased by about 30 basis points or more in a period of only three months — that happened when the ration had reached its two major secular bull market highs — the likelihood is highly probable that the NYSE margin debt / US GDP, is once more at its peak of all time high of 2.87 %!

Before 2007, the increase of 35.9 or higher basis points had occurred when the NYSE margin debt / USGDP peaked at its all time highs of 2.78 % in March of 2000 after having risen by 47.4 basis points in just three months!

Ignore the Margin Debt Alarm The margin debt alarm has seemingly been sounded every few months when investors realize absolute levels of margin debt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at Margin Debt Alarm The margin debt alarm has seemingly been sounded every few months when investors realize absolute levels of margin debt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at riDebt Alarm The margin debt alarm has seemingly been sounded every few months when investors realize absolute levels of margin debt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at margin debt alarm has seemingly been sounded every few months when investors realize absolute levels of margin debt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at ridebt alarm has seemingly been sounded every few months when investors realize absolute levels of margin debt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at margin debt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at ridebt has reached new all - time highs (inferring that risk taking has too reached all - time high levels and stocks are at risk).

When she was finally considerate enough to die, and Schopenhauer saw the notice in the morning obituary, his only reaction was to reach for his pen and write in the margin: «Anus obit, onus abit» (the old woman dies, the debt departs).

«When you start to look at what's controllable by the mayor and what's healthcare expenses, debt service, fringe benefits — there's not a lot of margin to play with there,» Skyler said.

When the debt / equity ratio is greater than 25 percent it starts to erode the margin of safety that is important to me as a net - net investor.

This is especially true when using margin debt.

Value investing works best when investors understand why a company is promising, based on things like its assets, revenues, earnings, profit margin, and debt levels.

History tends to punish bull markets when speculative frenzies hover around a narrowing list of stand - outs (e.g., Netflix, First Solar, etc.), an increasing number of initial public offerings (e.g., Twitter, Container Store, etc.) and / or a dramatic rise in margin debt.

The reason is that there are so many risks: government regulations of short - selling (SEC Rule 204), special government regulations put in place during market panics (e.g. the 2008 SEC ban on short selling financials), forced buy - ins, unlimited losses, debt to the brokerage, interest one is charged for being short which can vary arbitrarily, brokerages could change margin requirements to any arbitrary amount, arbitration clauses, you agree to indemnify the brokerage for anything it did even if it did the wrong thing, some brokerages also do market - making and thus have further incentive to fleece the client, and all the other «screw you» legal language that you agreed to when opening an account.

But when there is a lot of margin debt, that's a problem.

Now, it's one thing when there isn't much margin debt, because the margin debt won't influence the likelihood or severity of a crisis.

If debt and income put you on the margins when it comes to qualifying for a mortgage, a VA loan's compensating factors can be a valuable benefit and bring you that much closer to loan approval.

By paying down debt (and therefore reducing interest costs) and by slashing operating expenses: gross margin actually increased which is very rare when revenues decline, as fixed costs are spread out across fewer sold units.