So who has been the biggest winner in this pandemic?
Looking at the Russell 1000 index, it is prominent that companies with lower leverage on their balance sheets, have been able to outperform their counterparts with higher leverage.
While during boom times, income statement prospects such as revenue and EBITDA dictate equity valuation; In bad times, a healthy balance sheet is what creates the alpha for the investors.
This dispersion is evident in the 2020 bear market.
