Finance and Markets

The level of corporate debt foretells a market correction.

Below is a chart showing the yields ( or interest) that companies pays for debt. BB-rated represents investment grade debt while CCC-rated represents junk bonds or debt of companies with lower profitability. Large levels of debt will need to be refinanced in the coming years, about $900 billion this year and 1 trillion next year....

Debt Cycles

Finance, Economy and Markets Series #001 What is a debt cycle? A debt cycle is continual borrowing that leads to increased debt, increasing costs, and eventual default. 1 Debt, the lending of money from a lender to a borrower, is a useful instrument. It enables the borrower to invest the money towards the future while...

Investing near the peak of a Big Debt Cycle

Don’t obliterate your savings! Investing during the peak of a Big Debt Cycle is inherently risky. During the bubble phase before we approach the top, equity prices grow at the fastest rate with easy monetary policy further enabling this growth. If you are invested in market you risk blowing up your entire investment portfolio, if...

Price vs Value

Difference between price and value? An important distinction that can makes fools out of a rational people. Value is the certain value derived from an asset while Price is the perceived value one derives from an asset. When you invest money, lend debt, or deposit money in a savings account you do so expecting a...

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