Corporate America creates all the conditions for the emergence of a new crisis. This is true even if you do not take into account the sad situation in the segment of US power. All other sectors, too, is in danger - for AMarkets materials.
corporate sector debt increased by $ 793 billion in 2015. This net investment in the development amounted to only $ 93 billion - the data Hoisington Investment Management Co. This means that another $ 700 billion has been spent on the solution not the most productive in terms of development tasks. This share buy-back, the same Baibek, but using debt capital transactions M & A, stock speculation, etc. At the same time, net corporate cash flow fell to $ 224 billion, while corporate profits fell by 15% to $ 242.8 billion -. Is the minimum level, if you count from the first quarter of 2011.
In such circumstances, it makes sense for investors to reduce investment in the paper, which quotes are too high when compared with historical averages. This recommendation was given by many experts since February.What's interesting - so this dividend shares.
Against the background of bonds with a minimum yield is at least some income. But buying is only a relatively undervalued securities. Returning to the bonds - the worst situation is observed in the segment of bonds with a maximum maturity. For Japan - is 0.3% (40-year bonds), 0.9% for the German 30-year bonds, 2.1% for the British 50-year-olds and 2.6% for the 30-year Treasuries - WSJ.com data. All this suggests that expectations for GDP growth in individual countries and the world economy as a whole is very low.