The biggest debate on Wall Street in 2016 has been whether or not global economic weakness will push the U.S. into a recession in 2016 and lead stocks into a new bear market. According to the most recent NYSE short interest numbers, a growing number of traders are betting on a market downfall in the near future.
In the past two months, short interest in the NYSE is up 4.5 percent to above 18 billion shares for the first time since the Financial Crisis.
In terms of short interest as a percent of float, the current level of around 4.3 percent represents a post-crisis high, but it still well short of the 2008 peak near 5.75.
The climbing short interest could mean…
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