Gavekal Capital: NYSE Margin Debt Watch

Tuesday, July 1, 2014

NYSE Margin Debt Watch - A Tad Bit Higher In May

After margin debt dropped for two consecutive months in March and April, margin debt increased slightly by about $1.4 billion in May. However, the two month difference in marge debt remains negative about about $11.8 billion. With this slight increase in May, we are currently in a holding pattern to see if gross margin debt truly did peak in February. Net margin debt has held relatively steady since December 2013 which given its elevated level is a rare event over the past 11 1/2 years.

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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