In times of market turbulences in the USA and in Europe, caused by uncertainties about the economy, fears of a double dip recession, concerns about sovereign debt and possible implosion of the Eurozone, equity markets are under pressure. This is partly justified because any forthcoming recession would put a dent into EBIT of corporations and likely therefore a dent into the future free cash flow of companies. On the other hand, markets are also hammered down by emotions, by the king amongst them: fear. Continue reading →