Today's chart of the day illustrates investor sentiment and positioning by looking at the amount of Margin Debt held by investors on the New York Stock Exchange (NYSE). Recent reports by the NYSE showed that margin debt increased by a staggering 6.5% in just one month (April).
This is one of the biggest monthly increases ever, and now pushes margin debt levels to above $500 billion. Relative to GDP, margin debt speculation now accounts for 2.8% of the US economy, which is the same level at which it stood in March 2000 - just before the Tech bubble burst. You've been warned!
Chart Of The Day: NY stock exchange margin debt rises to record highs!
Source: Short Side of Long