Originally posted on 2/22/23
Large corporations cutting dividends is a very bad sign of what's in store.
Dividends have a multiplier effect, with cash dividends typically getting reinvested through share repurchases, and then for many retirees, living on that dividend, is what in many cases makes stocks have any value whatsoever (at least the old school thinking). Today it's all about MMT (Modern Monetary Theory) garbage and financial engineering post Patriot Act & Sarbanes-Oxley, which has decimated any entrepreneurial spirits remaining in the corporate world.
No reason to own stocks if dividends are going to be cut! And no reason to own growth stocks or long dated bonds if interest rates continue climbing! The only place to truly hide from inflation/hyperinflation is in physical precious metals, food, guns, ammo, and anything else that might be needed in a future black market economy when global governments really go tyrannical as the people refuse to "obey" orders!