Summary
- This article provides a follow-up study reviewing the 6-month performance of the top “zombie” firm portfolio selections based on Federal Reserve metrics.
- Three different model returns from March are reviewed, with sample stock portfolios down -23.4%, -29.9%, and -32.2% on average over the past 6 months.
- The study identifies high-risk companies that are considered economically unviable and rely on borrowing to stay alive, from over 1,300 at-risk stocks identified.
- New top zombie selections are provided using four different high-risk parameters to continue the evaluation period as interest rates are reaching 22-year highs.
- I am JD Henning. A Finance PhD and investment adviser with 30+ years trading and investing. I run Value & Momentum Breakouts where I identify breakout signals and breakdown warnings using technical and fundamental analysis. I run the investing group Value & Momentum Breakouts.
