The Fed's pandemic response, as well as the economic impact of COVID-19, have created a surge in "zombie" companies with limited future viability, according to Todd Jablonski, a CIO at Principal Global Investors.
He added: "Perversely, United States Federal Reserve actions to support overall economic activity during the pandemic via low rates and credit purchases have had the negative side effect of providing life support for zombies." The percentage of equities in each of these categories rose in the first half of 2020, most strongly year-over-year and based on three-year sales growth, where Principal now considers 69% and 51% of firms zombies.
Nevertheless, no matter the short-term life-giving forces, zombie companies eventually will die, he said. 4 portfolio moves for navigating the zombie apocalypse, since about three-quarters of the US investment grade bond market is "out of zombie risk." However, he warned that investors should be ready for the moment the Fed backs out of its support of markets, which could be brought on by fiscal stimulus, a vaccine, or trade regulation.
Source: News Formal (newsformal.com)
How about minimizing risks for wokers ?
This is what happens when your central bank and government are absolutely dedicated to not letting businesses fail. It only makes the situation worse and it harms everyone except for the ones that don't need any help.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Recruiter advice for getting a consulting job at Bain, PwC, McKinsey - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Still struggling with becoming A Profitable Forex trader? I can help you out,Make $3000 in just 3 days,No need to pay for Signals,Learn how to invest and generate income all by yourself.Become a successful forex trader today📊💰.DM for more info Markharrisfx Goddamn subscriptions ugh 🤦♂️ you click a link with full interest and you either have to pay or do some other crap. Tired of this 🤦♂️
Source: BusinessInsider - 🏆 729. / 51 Read more »
How to tweak your investing strategy for bigger returns - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Sports-betting companies are ramping up deals with the return of live sporting events - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »
England's pub, bar curfew will 'devastate' businesses, industry warns - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Well, the virus doesn't seem to be active before 10pm Gee. Imagine what an out of control virus will do to business. Kill the customers and no one will do any good. But yeah...priorities I guess herman6x jam 10 msh protes....
Source: BusinessInsider - 🏆 729. / 51 Read more »
WSJ News Exclusive | Devon Energy, WPX in Talks to MergeThe companies are in talks to combine, according to people familiar with the matter, in a move that could help the energy companies weather a prolonged industry slump. A merger will not cause the price of oil to hit $50. i know i have been really busy over these last few months. These wells are in this nation for a reason. If you do not believe in the world that is part of the issue. Looking forward to drilling more and talking to Texas about some of the laws that have been Or...maybe embrace sustainable? Where the future lies.
Source: WSJ - 🏆 98. / 63 Read more »
DOJ accuses TikTok owner of being a 'mouthpiece' of Chinese Communist Party - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. The pot calling the kettle black! DOJ should remember one finger pointing out, three pointing back! DOJ and AG Barr should be accused of being Trump's empire mouthpiece. ❌TikTok ❌CCP Otherwise,why TikTok would hide the experience of Uyghurs for CCPChina ?
Source: BusinessInsider - 🏆 729. / 51 Read more »