The author notes that margin debt has risen 49% over the past year, a warning sign according to Fundstrat Global Advisors. Since 1960, when margin debt grew more than 45% year over year, the market has declined in 83% of cases, the firm found. Rather than panic, the author is building cash by selling lower-conviction holdings and focusing on high-quality dividend growth stocks, mainly through the Schwab U.S. Dividend Equity ETF (SCHD), which yields about 3% and holds 100 stocks. Procter & Gamble (PG), its second-largest holding at a 4.3% weighting, has raised its dividend for 70 straight years and yields nearly 3%, and the author recently added it as a defensive holding. Cash from sales and dividends will be available to buy if the market declines meaningfully over the next year.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/13/2026 | 743.57 |
| Change that session | -0.33% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/13/2026 | 778.01 |
| Change that session | -0.01% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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