Who’s right and who’s wrong?
Gary Gordon takes a look at what Ray Dalio of Bridgewater Associates has to say about the markets and economy, pointing to the firm’s bearish assessment of financial assets. Part of the concern is the “credit-dependent financial system” could be put in a position to reprice assets lower should the rising cost of credit reach a tipping point.
Could Bridgewater be wrong? Possibly, Gordon says. But he points out companies are more leveraged today than any time in recent history. And these companies are vulnerable to rising borrowing costs. Could the rise in corporate leverage and decrease in credit quality lead to another financial crisis?
Meanwhile, the World Cup starts today. Who’s in and who’s out?
Here are today’s Editors’ Picks:
Chart of the day: Net debt to EBITDA for S&P 500 companies, ex-financials.
Comment of the day, from fusilier365:
Wall Street hates Disney and always has, which is why the share price has languished forever! Fundamentals with Disney are meaningless to the Street, which is always looking for “ASBD” (any stock but Disney).
Image of the day: World Cup.
Fun fact of the day:
The 2018 FIFA World Cup will be the 21st installment of the quadrennial tournament. Russia was awarded hosting rights on Dec. 2, 2010.
Thanks for reading. Please share your “Editor’s Pick” with fellow investors by posting it in the comments.
Have a great day!