Jeffrey Gundlach Warns NYSE Margin Debt Is In 'The Scary Zone'

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	Jeffrey Gundlach Warns NYSE Margin Debt Is In 'The Scary Zone' Traders are borrowing more than ever to leverage up their bets on the stock market. Some fear that this is a sign of a bubbly stock market that's doomed to crash. Others argue it's a more benign coincident indicator and at least partially reflective of the increasing presence of hedge funds. "It is in the scary zone," said DoubleLine Funds' Jeffrey Gundlach during a webcast on Tuesday. "If and when it hooks over, that’s when you’re likely to see a double-digit decline in market indexes." While he's not predicting imminent doom for stocks, he encourages us to be on the look out for a reversal. Gundlach has previously characterized margin debt as both a cause and effect of the market rally. Margin debt could very well continue to rise with the stock market. But it has a nasty way of adding to the downward momentum when stocks sell. Read »