Goliath vs. David

No, I don’t know how the elections next month are going to turn out.

But when it comes to the stock market, here’s a tip: bet on the incumbents.

That’s because today’s economic environment is particularly hospitable to “incumbents” — established, large companies — and hostile to upstarts.

At least, that’s what the capital markets are indicating.

So, “mega-cap” corporations with already strong balance sheets — think, Microsoft, McDonalds, Johnson & Johnson, Pepsi, etc. — are able to borrow billions at infinitesimal interest rates.

Meanwhile, smaller companies apparently are still finding themselves on the outside of a “credit drought.”
About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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