Debt, once more
I am still stunned that we can see the kind of spike in interest payments that we have, alternatively the spike in debt servicing ratios, and a) the bank NIM trajectories are garbage and b) consumer discretionary names are in rude health (thinking of JBH, NCK etc).
Perhaps it is simply “early days” in the process.
Either way, the odds that retailers have been over-earning are high, in my view, and thus its good odds that the true multiplies are higher than what participants think they are currently paying.
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