Income From Equities or Bonds?
Surly Trader submits:
How the tides have changed so quickly. One year ago, the financial markets seemed to have no bottom in sight. A year and a half ago, some of the largest and most stalwart companies (i.e. GE) were having difficulty rolling their short term debt.
Now, companies are holding record levels of cash and trying to figure out what to do with it. Since the fundamental outlook from a top-line revenue perspective still does not look great, companies turn to three alternatives to expansion: 1) share buybacks; 2) higher dividends; and 3) leveraged buyouts. All three of these are bad for bondholders and mostly positive for stockholders.
Investing, Long Term Investment, stock market | admin March 7, 2010
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