Posted on 03/25/2020 10:15:01 AM PDT by Kenny Bania
The coronavirus pandemic is shutting down entire sectors of the economy and putting millions of Americans out of work, but one corner of Wall Street may find opportunity amid the carnage: private equity.
Private equity firms have been stockpiling cash in recent years as rising markets made it harder for them to invest, accumulating a record pile of “dry powder” for deals. The industry typically buys undervalued companies with borrowed money, taking them private to spruce up operations for an eventual sale. The high company valuations that kept them at bay collapsed this month amid widespread business closures and quarantines of some of the world’s largest cities.
(Excerpt) Read more at cnbc.com ...
Now that the long-awaited market correction has taken place, it’s time to rebuild.
They better have a lot of cash stockpiled, because at present debt markets are frozen and no one is lending for speculative ventures.
You don’t think all that money from short sales and insider trading sales has been thrown away do you?
There is lots of cash out there looking for something good cheap.
By the time you’ve heard about it and thought about acting on it the wall street vultures have already organized and are ready to pounce on your fear and bad choices. What is more, most don’t care which way the market goes since they make money on both sides of the trade.
What is more, negative interest rates make lots of deals look really good.
I hope my IRA managers are among the vultures. I took a good hit, but not as bad as some because my investments were diversified. I expect them to rise to a point higher than when they fell. And Trump’s offering a light at the end of the dark tunnel is helping nervous stock traders.
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They will buy up a bunch of companies and move all the jobs to China. You know because they were hard hit by this virus “not called China” virus.
I trust nothing coming from CNBC. Fox Business is light years better
This is what recessions are about - the weak hands fold.
Lots of stuff is up, would have been even better to have bought it last week, of course. I haven't got the stomach to jump on the TSLA roller coaster yet.
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