Feb. 8 at 11:43 AM
$SPY
Just remember,
Everything is fine until it isn’t.
Corporations have been buying back shares for years now. They use free cash flow to do so, but most have also been issuing bonds to buy back shares as well.
Debt, debt and more debt.
One reason I’ve been accumulating more bond funds in my portfolio recently is to hedge an equity selldown.
Remember, bond holders get paid first.
Then preferred shares and equity shareholders get what’s left.
Several year ago I said that 2026 would be the peak in this business cycle.
My timing won’t be perfect.
Maybe things spill over into early 2027?
My call is still for the next recession to named in mid 2027.
Oil/gas sector will let us know when it truly begins.
Once WTI crossing
$100- the recession has begun.
I’m staying long miners, energy and bond ladder.
$BND $XOP $TLT $RIO
https://wolfstreet.com/2026/02/07/amzn-goog-msft-meta-orcl-plan-700-billion-in-largely-ai-related-capex-in-2026-heres-where-the-cash-comes-from/
