A diary of the thought process behind my investment decisions
Somebody Will Take The Cheap Money
I have been expecting to hear about cash takeovers or LBO activity but a deal has yet to materialize. Corporate spreads are tight, while bond yields are low and stocks are down, making this the best time for takeovers in years. While stock prices were lower during the crisis funding was not as readily available. Cheap money is being handed out and in my experience somebody will take it. An M&A boom would be very bullish for the market.