Raising money right now is expensive. For corporations, the ability to get credit is shrinking while the price, or interest rate is rising. The public stock market decline has also made selling shares to fund expansion and or general operations less likely. All companies, private and public are now working on this problem. The biggest pressure will come to bear on new ventures and expansion plans. This new challange will relate directly to economic growth rates in the next few quarters. Good companies will need to find ways to reduce their reliance on outside, expensive capital.

Investors face the same issue. A balanced asset allocation may allow you to avoid selling equity investments in this environment. Drawing down on cash and fixed income assets eventually results in a riskier portfolio but can afford you the time to make a more informed decision. In general, portfolios with sufficient cash flow have much greater financial flexibility during this difficult period.