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Re: DiscoverGold post# 2841

Friday, 05/20/2016 4:15:57 PM

Friday, May 20, 2016 4:15:57 PM

Post# of 2987
Global Equities Are Hanging By A Thread

* May 20, 2016

The unintended consequences from the continued altering of the capital structure of firms, by issuing debt and retiring equity at a time when operating cash flow growth is showing signs of fatigue is disconcerting. This artificial massaging of EPS is not sustainable and if non-financial corporate credit quality has peaked for the cycle as seems likely, the equity risk/reward tradeoff remains skewed to the downside.

Bottom Line: A capital preservation mindset is still warranted. Continue to prefer global defensive over cyclical sectors.



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Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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