Gavekal Capital: Largest Two Month Drop In NYSE Margin Debt Since September 2011

Thursday, May 22, 2014

Largest Two Month Drop In NYSE Margin Debt Since September 2011

The April data for NYSE Margin Debt definitely raised more than a few red flags for investors. We now have had the first 2-month consecutive drop since September 2011. Of course, the most significant difference between March and April of this year and August and September of 2011 is that the S&P 500 was actually nearly 30 points higher in March and April. In August/September 2011, the S&P 500 had already declined by about 170 points by the end of September.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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