bindlepete

10 Dangerous Stocks to Avoid

This is a pretty silly analysis in one regard. True, leverage can work against you in hard times but when interest rates are well below the inflation rates it could well be a time to borrow as it is essentially "free" money. Pay it back with peanuts.

Now if you are in a regulated or solid business situation such as a utility or Rail Road (these rail roads folks are on the uptick due to the spiking energy costs of trucking and need for commodity exports coal grain etc) leverage at a less than zero cost makes a lot of sense. The utilities are guaranteed a profit if they are a regulated outfit so they will get their interest back no matter. ( This is not true for 3rd party producers.)

The rail roads do have pricing control outside their contractual agreements and here, unless they are fools, they should have themselves covered for inflation.

If you do not think we are in an inflationary environment google Shadowstats . what is going down other than housing ?

Food no, Medical no, education no, labor no, energy no, enertainment no, clothing perhaps a trifle, rent no, taxes, no . The BLS is cooking the figures. Since Clinton they have been lying to us.