Amazing it has gotten to this point!!!!!!!!!!!!!
The air gap between the real value added and the credit cycle top in equity valuations, coupled with rising interest rates, suggest that the WACC is about to spike as both equity and debt become more expensive.
When (not if) that happens, then the ~16% zombie companies out there are toast and the rest will be tightening their belts.
Now I don’t know what business segment you are in and how exposed that might be to said zombie companies, trade war tariff effects, etc., but generally speaking everybody is going to get dinged if/when this credit cycle bursts.
The tricky part is not knowing what the authorities will do about it, but we know they are NOT going to willingly let a full deflationary spiral get going. It may happen anyways, but I’d put that chance at
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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