U.S. corporations have loaded up on debt over the past eight years. According to theFinancial Times, U.S. corporations have $4 trillion more debt on their balance sheets today than they did at the start of 2008.
Longtime Casey readers know we don’t put much stock in these ratings. Many companies that failed during the 2008 financial crisis had strong credit ratings right up until they went broke.
However, the near extinction of triple-A-rated companies shows you how fragile the market is today.
If you choose to own stocks, stick with companies with little to no debt. These companies have a much better chance of surviving the deflationary depression.
In the chart below that Corporate America’s cash-to-debt ratio has been falling since 2010.
According to S&P corporate balance sheets are the weakest they’ve been in at least a decade.