Margin Debt Hits Record: Chris Mayer / July 12, 2007

Investors are borrowing record amounts of money to buy stocks. The total borrowed amount is up to $353 billion, up 11% from the month before according to the latest data from the NYSE.

That's noteworthy, because it shows investors are quite optimistic right now. And it also shows how vulnerable they are to a decline, when such leverage will only magnify their losses.

If you've got any kind of a contrarian streak, you have to look at that and think we're due for a dip. That's not all bad, as you'll have a chance yet to pick up some good stocks. We've got a few ideas in Capital & Crisis — including the latest idea, which capitalizing on the railroad boom without owning a railroad.
— Chris Mayer

• View all of the Crisis & Opportunity Quick Takes >>