Thanks for downloading this show from PC1. Before we get rolling, here's a word from one of the folks who helped bring you this podcast.

The following program is a podcast1.com production.

Great to have you here on the Clark Howard Show where it's about you and your wallet. I want you to learn ideas from me so that you can keep more of what you make coming up in 20 minutes.

When is the Wells Fargo stuff going to stop having one layer after another of misdeeds?

You need to hear in today's Clark Rages moment the latest mess at Wells Fargo.

And a half hour from now, a new list of the best paying jobs in America.

I want to tell you where the opportunities are for you either to go get more training or if you're in school, where you should be looking in order to have the best career path possible, at least what it looks like right now.

Clark.com is our website. When you have a question for me, go to Clark.com slash ask.

And I want to talk about something that has me very concerned. Do you know that you can borrow money to buy stocks? It's something known as buying on margin.

And so someone will say, you know, I'd like to have 100 shares of that. But wouldn't it be better if I could have 200 because the market's going to go up to the sky?

So you buy 100 shares and you borrow the money for the other 100 classic example of margin. And the money people are borrowing to buy stocks just hit an all time record high.

It's more than half a trillion dollars. So the problem with this is that the stock market has been on a steady upward trend for eight years now.

The market hit its low point almost exactly eight years ago this week. And since then, it's gone. It doesn't go straight up, but it's gone steadily upward.

And stock values have climbed to the point where the air is pretty thin. And at some point, we're going to have a market decline that could be steep.

But even if it's not steep, the problem when you gamble by borrowing money to buy stock is that even a small decline in the value of that stock can lead to something known as a margin call.

That's where you're given usually just a couple of hours to come up with the cash to cover what you borrowed or the stock broker that lent you the money to buy the stock will immediately call the loan due sell your shares and guarantee a loss for you.

You know, margin works great when things are going up. Margin can be a nightmare. And in the worst cases can wipe you out when a stock declines.

So to have people borrowing money at a record clip to buy stocks at a time when stocks are so high valued is very, very risky and very dangerous.

My feeling about margin is that the amount of margin that makes sense is no margin. There are people who and I'm an investor. I'm not afraid of risk.

I invest very heavily in the stock market. But I do it well diversified. I put money in every month. And I'm a slow and steady guy with that.

All I want to do is create financial security and wealth. But doing margin is for people who love to gamble. And if you really love to gamble.

Why don't you go somewhere fun like Vegas taking some shows go lose your money at the casino. See all the bright lights.

...