- Businesses have seen sources of funds (profits and credit) start to fall according to this Bridgewater analysis.
- “As you would expect, when this happens, they cut back first on buybacks and M&A, then on capex, and last of all hiring.”
- Once the latter happens consumer spending suffers and contraction ensues.
- Though they do point out that earnings have yet to fall the required amount for this to start properly.
Sources of Funds
