Gavekal Capital: NYSE Margin Debt Rises (Again) To An All-Time High

Friday, February 28, 2014

NYSE Margin Debt Rises (Again) To An All-Time High

Margin debt in NYSE accounts increased again in January to an all-time high. This series tends to top out before major market corrections occur. Margin debt is now at an all-time has a percentage of total market capitalization. Also, margin debt as a percentage of nominal GDP is just about equal to levels seen in July 2007 (h/t to John Hussman for the third chart below).

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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.
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