In the following video, Fool analyst Blake Bos takes a look at margin debt, or the degree of leveraging taking place in today's market. He discusses how the results he sees can often be an indicator of a hot market. He also highlights several stocks that have had remarkable run-ups recently and that he wouldn't recommend betting big on at the moment. Blake also shows investors that although you should never attempt to time the market by trying to predict crashes and selling beforehand, understanding this indicator of an overly hot market can be a great tool for knowing when to buy.
More on Netflix
The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so be sure to click here and claim a copy today.