Gavekal Capital: Margin Debt Is Acting Curiously

Tuesday, August 26, 2014

Margin Debt Is Acting Curiously

The unique behavior margin debt held in NYSE accounts this year continued in July. After looking like it had reached a structural peak in February, margin debt surged back in June. Now the latest data point for July shows NYSE Margin Debt dropped by about $4 billion. Technically, the peak in February still holds as it is about $2 billion higher than the level reached in June. However, if in hindsight February is the peak, margin debt is certainly acting uncharacteristically compared to previous peaks in the equity market. Lastly, net margin debt reach an all-time high in July

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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