“Alternative Fact”: 40% Of US Companies Are Losing Money

I thoroughly enjoy exposing investors to "alternative facts." Just call me "Kellyanne Conway" (there's something I never thought I'd say). Equity markets provide plenty of opportunities when it comes to shedding light on inconvenient truths. For instance, over the weekend I noted that the post-election rally in US stocks is entirely attributable to multiple expansion. Investors are willing to pay more for a dollar of earnings than at almost any time in history, thanks largely to Donald Trump's

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2 thoughts on ““Alternative Fact”: 40% Of US Companies Are Losing Money”

I’m not surprised. I’ve been telling people that low interest rates are the only thing keeping most retailers in business. Levering up to buy back stock has left many companies exposed to a rise in rates. I used to work for a big bankruptcy/turnaround consultant. Their business has been slow because debt is so cheap. A hundred basis point increase in rates will send the dominoes a’tumbling.