Yep Dale, similar to the article in the Washington Post this weekend. In their discussion about PSIX 's bk (it's based near DC, hence PSINET stadium in Baltimore), they noted the very high level of unsecured debt taken on by the major suppliers during what was thought to be an exponential growth rate in fiber optics. And of course, a pile of it won't ever get paid since bankruptcies will litter the landscape for many 1/4s to come. Why? Because exponential expectations were met with reality and the truth is that there is big overcapacity now and demand has long since slowed to linear growth, nothing near exponential. Boo Hoo
I'm not saying the market won't go higher here, it easily can for the reasons we all know... liquidity liquidity liquidity.
However, those who like to say the worst is over because inevitably, bloated inventories will shrink and we'll be off and running again, have another thing coming. IMHO there's lots of black ice on the road ahead. Maybe as Dale says, after some possible rallying, then a real selloff, we'll get the buy of a lifetime.
I'm treading lightly lately, hitting the ones I like a lot (short and long) and leaving the rest for those smarter than me.
Regards
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