Bloodbath Coming? US Margin Debt Reaches ‘Danger’ Levels, China, Japan Lead Record Investor Flight From US Bonds, ‘Hindenburg Omen’ Looms Over S&P, Treasury Yields Keep Rising
August 16th, 2013
Investors euphoric as US margin debt reaches ‘danger’ levels
Fund managers are around the world are gripped by euphoria, convinced that America is in full recovery and Europe has overcome its debt crisis.
Bank of America’s monthly survey of investors showed a dramatic rise in confidence in August, with a net 72pc expecting growth to accelerate over the next year. It is the highest in reading since 2009.
Almost everybody expects bond yields to rise as deflation fears evaporate, with just 3pc still worried about the risk of an economic relapse. Managers have slashed their bond allocation to a 28-month low