One of the S&P 500's Most Flawless Forecasting Tools Is Flashing an Unmistakable Warning for Wall Street

But investors can also use margin to purchase stocks and lever their investments. Similar to short-selling, borrowing money from your broker comes with an obligation to pay interest. This borrowed capital has the potential to amplify your gains if correct, but also magnify your losses if your investment thesis is wrong. In other words, it's risky and exposes investors to the possibility of a margin call, affording your broker the right to sell some/all of your holdings at potentially disadvantageous prices ...