Why Companies Crushing Cash Flow Today Could Suddenly Crash Tomorrow – The 10-Year Profit Trap You Can’t Afford to Ignore!
Tobias, who pays more attention to this than most, does not have a single attribution:
- Loose monetary policy?
- Deficits?
- Software eats the world?
- Mania?
- The singularity?
- Flows?
People have tried to attribute but no clear answer. Perhaps it is a combination of these.
If it is so difficult to identify in hindsight, you wonder if you are able to identify before this.
The last chart plots cash flows divided by the market equity value. The blue are the low decile and red the high decile.
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