If the markets are kind to them, and their stocks increase in value, margin traders will have more equity to use to buy more stocks. This can cause a positive upturn in the markets as the buyers flood into the market. On the other hand, if the market goes into a violent downturn, as we had last year, margin traders get caught. Their investments have depreciated, but they still have large debit balances. Lower interest rates also have other benefits.
Businesses are able to borrow money cheaper and so are able to expand and spend more money.
Home buying might increase, as it becomes cheaper to finance a new home. We have not had anyone reporting to us what stocks are proving to be the most lucrative, possibly as they could be afraid that other teams will try to steal their secrets to success. While this looks good for one and very bad for the other, we still have plenty of time. The Traverse City Record-Eagle. All rights reserved.