Bifurcation! The buzz word of choice
Wall Street Journal (subscription required) writes that bifurcation is the new buzz word of choice when referring to the market. People like, "Steve Galbraith, a managing director over at Morgan Stanley, are throwing it around like you're supposed to know it."
What does bifurcation actually mean?
Bifurcation is a fancy way of saying that in this brutal market, the universe of companies is splitting into two camps. Call them the vanquishers and the vanishers. Vanquishers are companies that are chugging through these times with solid balance sheets. They're companies that can still raise capital. And, in a somewhat ironic twist, the vanquishers pay or are on the path to paying a dividend -- the sign of a dinosaur just a few years ago.
The vanishers are none of the above.