INDU Dow Industrials (fka $INDU)

[Pro-Life]

The Margin Debt Time-Bomb
A terrible threat created by terrible decision-making
by Brian Pretti
Friday, September 4, 2015, 9:00 PM

http://www.peakprosperity.com/blog/94263/margin-debt-time-bomb

What is perhaps the greatest risk to individual investors these days?

Is it the potential for a decline in corporate earnings based on a slowing global economy? Is it that current valuation levels in both equities and fixed income instruments are much nearer historic highs than not? Is the biggest risk a US Fed that will soon raise interest rates for the first time in close to a decade?

Although all of these are specific investment risks we face in the current cycle, my contention is that the single largest risk to investors is a risk that has been present since the beginning of what we have come to know as modern financial markets. The single largest risk to investors is themselves. By that, I mean the influence of human emotion and psychology in decision making.

We Are Our Own Worst Enemies...

Human Emotions Meet Animal Spirits...

The Margin Debt Time-Bomb...

Broken down in 3 segments, the rest is at the link above...