Economics

Is It Time To Start Asking Again “Has NYSE Margin Debt Peaked?”

Is It Time To Start Asking Again “Has NYSE Margin Debt Peaked?” by Eric Bush, Gavekal Capital

NYSE margin debt has been steadily moving higher this year as it increased over $60 billion from January to April. In May, however, margin debt declined by a little over $8 billion for the first decline in four months. Before one gets too excited, it is worth remembering that one month doesn’t make a trend. Margin debt looked as if it peaked in February 2014 before it moved sideways for 11 months and then broke out to new highs. The 1-quarter moving average of margin debt as a % of total NYSE market cap has increased to the third highest level since 2003. Net margin debt as a % of total market capitalization is at an all-time high.

NYSE Margin Debt

NYSE Margin Debt

NYSE

NYSE

NYSE

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