“Someday financial markets will decline...rising stock/bond markets will no longer be government policy. QE will end and money won’t be free. Corporate failure will be permitted. The economy will turn. Someday, somewhere, somehow, investors will lose money and once again come to favor capital preservation over speculation. Someday, interest rates will be higher, bond prices lower, and the prospective return from owning fixed-income instruments will again be commensurate with risk.” Seth Klarman
Tuesday, November 17, 2015
Debt-based facade: How good do those increased earnings look when manipulated upwards through share buybacks financed with MORE debt? What happens when interest rates normalize?
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