COMMON SENSE, this is mainly a technical rally and cashing out two weeks ago probably isn't a bad move. There has not been much change in the intrinsic value of most companies during these times, and the market will have to dip this summer. If we are lucky then it will make a definite higher low, signaling a triple bottom completion & the bottom of the bear.
The bankruptcies are a matter of many companies sticking it to the banks so they don't have to pay old loans. It is ironic that last year Congress tried to change the personal bankruptcy laws (they failed, thankfully) while corporations are ducking debts left and right! If I were running an airline, I'd look for any excuse to be in bankruptcy court right now - why should American, for instance, keep paying old loans when their competition will all get lower costs by reducing debt in bankruptcy? Good finances definitely are not rewarded under those rules!
So most sectors are getting straightened out by bankruptcy court or renegotiating debt under the threat of BK. Lots of common shares are being canceled.
I wouldn't want to be in the banking industry right now!
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