FYI: With the U.S. economic expansion getting longer and longer, nervous investors are pouring money into funds tracking the investment factor known as “quality.” It’s a category whose composition has changed.
Gone are the days when having a rock-solid balance-sheet meant you made food, sold clothes or built industrial infrastructure. Now, technology firms are king, with chip manufacturers overrunning the list. The rules are the same -- quality denotes a high return on equity, low debt and lots of free cash flow. But the businesses that qualify have evolved.
Regards,
Ted
https://www.fa-mag.com/news/-quality--stocks-look-very-different-than-they-did-a-decade-ago-45796.html?print
