Warnings Warning Signs of the Top Liquidity Makes the Market go Up. Liquidity is not what you think.
Most people think it is money.
It can also be debt. Borrowed money can buy stocks just like real money. Except the borrowed money has to be paid back. Another problem is that much of the new money coming into the market is being borrowed . Now the last time margin debt rose so much faster than the overall market was in 1993, and after that period of time, stocks went down for a while.