All articles tagged with #liquidity issues
Spirit Airlines stock plummeted after warning it may not survive beyond a year without additional cash, citing ongoing financial struggles, market conditions, and potential asset sales, despite recent bankruptcy exit and capacity cuts.
After being ordered to pay $83.3 million in damages to E. Jean Carroll in a civil defamation trial, attorneys warn that Donald Trump may face liquidity issues and need to liquidate some of his properties to appeal the verdict. The damages include $7.3 million in compensatory damages, $11 million for reputational repair, and $65 million in punitive damages. Trump, who plans to appeal, faces another civil fraud trial and potential bankruptcy, but some experts doubt that the case will bankrupt him due to his assets.
DoubleLine Capital CEO Jeffrey Gundlach predicts that a recession will hit in a few months, forcing the Federal Reserve to cut rates "a couple of times" this year. Gundlach warns that cutting rates in this inflationary environment will weigh on already high price pressures. He advises reducing risk on strength, which means selling equities into rallies. Gundlach also warns of potential liquidity issues and recommends keeping an eye on the gap between T-bill and banking system rates. Despite the Fed raising interest rates, Gundlach believes gold deserves a role in portfolios at $1,800 type dollar price.