Companies have been loading up with debt over the last few years. As Deutsche Bank illustrates in the chart below, corporate debt as a percentage of GDP is nearing recession levels. Has this balance sheet expansion been a mechanism to offset declining demand and margins? What would a rate hike decision mean for US companies?
I won’t pretend to have the answers when it comes to the timing and impact of the Fed’s decision on markets. But I will say, having a process that’s rules-based and you can stick to has always been and will continue to be critical in your efforts towards investment success.
Zero Hedge’s opinion is clear and the article linked here covers this in detail: Deutsche Bank: The US May Now Be In a Recession