In a previous article, The Fed’s Body Count, we stated:
“Markets and economies, like nature itself, are beholden to a cycle, and part of the cycle involves a cleansing that allows for healthy growth in the future. Does it really make sense to prop up dead “trees” in the economy rather than allow them to fall and be used as a resource making way for new growth?”
We come back to that thought in this article inspired by the notion that investors find themselves in a forest increasingly littered with dead trees. In today’s market parlance, the dead trees (corporations) are called zombies. This article details the corporate zombie concept in-depth and provides a few examples to illustrate the topic.
It is no small irony that one year after the end of the great recession, a television showRead More »