Yield is the Last Refuge of Scoundrels

New from Aleph Blog Yield is the Last Refuge of Scoundrels: Governments involved in financial repression (keepin... http://t.co/Y07JG2mm Governments involved in financial repression (keeping savings rates below the inflation rate) encourage their citizens to do stupid things by reaching for yield. Remember, most people think of yield as a magic chicken that lays eggs on schedule, and never gets sick or dies. Those who truly understand markets know that yield is an allocation of free cash flow, and that many businesses can’t control their free cash flow, so dividends are less than fully certain. Link - Trackbacks