By Jeff Clark, editor, Market Minute It’s another new record for the stock market! The S&P 500 traded as high as 3824 yesterday – its highest level ever. And, investors are celebrating the event. But, not every all-time high is a good thing. The record I’m writing about today is somewhat less celebratory. And, if history is any sort of a guide, then there’s another reason to be a bit cautious here. Let me explain… | Recommended Link | | FROM: Jeff
Why I worked through the holidays (urgent)
A lucrative trend in the booming IPO market has been developing faster than even I anticipated… Now, somewhere between 25% and 50% of American IPOs have a special 5-digit code attached to them, which lets you invest before their stock market debut. For my full tutorial on how to prepare – and profit – from the coming boom… | | | -- | Last month, brokerage account margin debt surged to an all-time high of $722 billion. Margin debt is money that investors have borrowed to put into the stock market. So, to put it another way… last month, investors borrowed a record amount of money to put into the stock market at record-high prices. That’s not good news. You see, there’s a strong correlation between record-high margin debt occurring right before a peak in the stock market – especially following several years of higher stock prices. For example, in March 2000, margin debt reached a record high of $278 billion. That was the same month the S&P 500 peaked at 1525. One year later, the index was trading at 1100 – down 28% from its all-time high. Margin debt peaked again in June 2007 when it reached $381 billion. Sixteen months later, the S&P 500 had fallen by 50%. The ability to borrow money helps to push stock prices higher as investors buy stocks at ever-rising prices. It’s tempting to borrow money to invest in the stock market. After all, if you can borrow money for 2%, invest it, and make 10% or more, then you look like a genius. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out. | The problem, of course, is when you borrow money at 2%, and then lose the funds. Leverage is a double-edged sword. And, the stock market isn’t known for making the majority of investors look smart. So, when everybody’s borrowing money with the hopes of levering up their returns, it’s usually a good reason to be a bit cautious. A $49 investment could lead to you making up to 172X on your money Margin debt rose to a record $722 billion last month. That’s 10% higher than where it was the month before… And, that’s one of the largest monthly surges in margin debt – ever. All of that money has helped push stocks to record prices. But, the stock market making a new high on a record amount of borrowed money may not be the sort of good news many investors think it is. Best regards and good trading, 
Jeff Clark P.S. On Tuesday, my team and I filmed an Open Line Q&A for my Jeff Clark Trader subscribers where we took reader questions for about an hour. I answered questions about some essential options terms, what to do ahead of an impending stock market decline, and even my current thoughts on trading options on bitcoin. By joining Jeff Clark Trader, you’ll have access to these quarterly Q&A sessions with me, along with an archive of training videos, and several special reports such as my 3-Stock Retirement Blueprint, which could allow you to retire comfortably by trading just 3 stocks. Click here to learn more about this $19 introductory options service that can help you generate wealth using the same techniques I’ve been using for three decades. Reader Mailbag Where do you predict the market will move this year? Are you excited that the market is moving higher, or are you skeptical that this could be a bad sign? Let us know your thoughts – and any questions you may have – at feedback@jeffclarktrader.com. In Case You Missed It… WARNING: New Rule to Impact 1,200 Banks in America Please take one minute to review this URGENT letter from the Office of the Comptroller of the Currency (OCC). The OCC is the agency that regulates about 1,200 banks in the U.S. And it just issued a letter announcing a major change to our banking system that could impact 234 million Americans. If you have any money in the bank… Please click here right now and see how this could impact you. 
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