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.
Blake Bos has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Netflix, and Tesla Motors. The Motley Fool owns shares of 3D Systems, Netflix, and Tesla Motors and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
