A mere five years after the worst financial crisis since the 1930s, and investors are more highly leveraged than they've ever been in human history. This is what happens when Central Banks bailout the greediest people on the planet - they become even more greedy.
Moral Hazard Visualized:
Net Leverage: All time high as of the end of August
Net Leverage: All time high as of the end of August
Net leverage consists of margin debt minus available balances and is reported monthly by the NSYE. i.e. column 1 - (column 2 + column 3). ZH calls it "investor net worth", (but calculates it as available balances less margin debt, so it's negative). Either way it's at an historical extreme.
Net Leverage: Five Year View:
ZH: Sept. 25, 2014
Most Expensive. Market. Ever
We also learned this week, that on a price/sales ratio basis, this is the most expensive market in history. Of course sales/revenue data is less easily manipulated than profits/earnings so this is by far the more accurate indicator.
Bonus Charts:
Canadian Pacific:
Johnson & Johnson
Biotech:
Priceline:
Amazon:
