Margin Debt Tops Historic $1 Trillion
Nasdaq valuations have hit a historic extreme, now the highest ever relative to GDP, warns Bert Dohmen of Dohmen Capital Research. He calls today “the most risky time in markets and geopolitics,” fueled by Fed-driven liquidity and frenzied speculation. Margin debt on the NYSE exceeds $1 trillion—Dohmen grimly notes, “imagine when margin calls hit and foreclosures start.”
His decades of experience highlight a simple truth: follow credit and liquidity trends. As liquidity contracts, stocks fall; as it expands, they rise. For safety, Dohmen points to one refuge: gold and silver, preserving purchasing power amid the chaos.
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