Post #1875 by WendyBG on the Macroeconomic Trends and Risks board

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- Manlobbi

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It's worth remembering that "Cash Flow is King."

A crash like the one you describe usually is followed by a recession which reduces the profits of many companies. Even Dividend Aristocrats may cut their dividend at the same time that the price of the stock falls. (Remember General Electric in 2009.) Also, stagflation may result as happened in the 1980-82 recession.

The truly risk-averse will make sure that their expenses are covered by cash or by inflation-adjusted sources of income like Social Security and TIPS.

Wendy

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