Paul,
To expand my comment.
When I say I would avoid companies with debt, I'm referring to those companies that might be forced to borrow working capital should we enter a recessionary period. I want to see substantial working capital, the debt structured to long term, and a respectable debt ratio. If this is the case, the low interest rates would be preferable to a company issuing stock to finance activities.
As to the banks calling wanting people to refinance home mortgages - IMO this will cease. With an economic slowdown, the banks will be tightening loan policy and there will be a wider spread on deposit/loan rates.
My reasoning - The non-secured consumer loans (credit cards), highly leveraged mortgages on over valued real estate, highly leveraged corporate debt, International loans to emerging countries, and loans to hedge funds and brokerages. All of these depend on a robust economy.
The first domino has fallen and the rest are teetering -g-
JMHO,
Ron
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