It looks like a lot of brokers are increasing their margin haircuts ahead of the election. Robinhood announced that they will be increasing as well. Any thoughts on if this will have a significant impact on the markets. Any thoughts on if this will cause some deleveraging as the retail space has become a more significant part of the equities market.
To a certain degree, it has probably occurred already. The determined gamblers will be levering up thru beta and long calls. The subsequent lowering of margin requirements should have a stimulative effect. I wonder how fast that will occur.
From a broad perspective, everything this month is garbage trading. This what I have seen: - Trump with covid reaction - Trump will not negotiate stimulus. - Trump pedals back. - Stimulus prospects before election looks bleak (Why even believe there was going to be a deal before elections in the first place? It's going to be a winner take all.) I think the elections results are going to be very important for some beaten down value sectors. Tech? Well, that's always bullish. But, a rotation to value could cap those valuations. Disclaimer: I don't know squat.