Solid Ray Dalio

Discussion in 'Economics' started by Stockolio, Jan 10, 2019.

  1. Nighthawk

    Nighthawk

    Ray Dalio is not a corporate credit officer. If so, he would need to read more about debt-to-income (DTI) ratio and FCF. Your absolute credit and your absolute loan size doesn´t define your ability to pay back the credit. In the corporate world, the free cash flow (FCF) - the cash flow being generated after cash outflows for operations and mantaining capital assets - is defining your corporate credit ability.

    Just to mention the usual $ Trillions in outstanding debt is as useless as mentioning Donald Trump´s bank loans. It´s worthless without knowing what his income side looks like.

    Otherwise, his book is a good general view of macro - but the actual micro-structure of debt economics work "a bit differently".
     
    #11     Jan 10, 2019
    SunTrader and Stockolio like this.
  2. What good is FCF, when maturity's are expiring and credit markets freeze beside Fed ? Tell me, do you think AT&T will be around in let's say even 10 years ? When debt servicing starts to mingle in R&D, along side other growth sectors of a company's budget, then you have a fall to the competition and ability to manoeuvre

    I think he understands corporate credit just fine, although you make a good point
     
    #12     Jan 10, 2019
  3. SunTrader

    SunTrader

    The U.S. economy (Housing, Autos, Retail, Airlines) is in recession. Just not "officially". Yet.
     
    #13     Jan 12, 2019
    murray t turtle and nooby_mcnoob like this.
  4. %%
    Airlines+[new] housing tend to go down/downtrend. Then they slapped another tariff on Canadian lumber LOL. I dont really have an opinion on WMT; but LUV airlines tend to outperform regardless. SDOW is above its 200 dma, last time i looked NOT a predicition.:cool::cool:
     
    #14     Jan 14, 2019