Slowing Cash Flow Could Mean a ‘Nasty Surprise’ for U.S. Stocks
Why the Stock Market Sugar Rush Might Not Last
This article is for subscribers only.
Amidst the euphoria over fresh record highs in U.S. stocks, Societe Generale SA is among a few investment firms now highlighting warning signs for investors.
Concerns over a flattening U.S. Treasury yield curve -- a sign to some of a coming economic slowdown -- have quieted down for the moment, thanks to the recent pick-up in longer-dated yields. But the potential slowdown message has an echo in diminishing corporate cash flows, SocGen strategists including Andrew Lapthorne have highlighted.