Distressed Investments Time is Coming


Distressed Investments

Time is Coming

Why now is the time to prepare

Rucker Capital Advisors, LLC (“Rucker Capital”) is a New Jersey private merchant bank whose strategy is to become the largest sponsor of high risk high return investment opportunities for accredited investors. Rucker Capital stresses to its clients to control high risks by only investing what he or she can comfortably afford to loose. Seeking to achieve extraordinary returns involves risks and limiting how much money is committed is essential to managing that risk.

Rucker Capital is not for everyone. “Our strategy is only for a special type of high income risk taking individual and is certainly not for everyone, especially those that follow the crowd,” states Rucker Capital’s spokesperson. Our sponsored companies raise pools of capital through private placements for companies that use their capital to acquire or merge with distressed and high growth venture stage companies.

Rucker Capital Advisors’ sponsored companies use their cash in acquisitions or mergers which effectively provide funding for the target company. Despite the stock market’s current performance, no one except contrarians like Rucker Capital are currently focused on distressed companies. However the firm believes that over the next three years distressed opportunities will offer some of the best profit generating opportunities that have been seen in decades because of the probability of asset prices (including stock prices), decreasing is substantially higher than the probability of asset prices increasing. This higher probability of an asset price decrease combined with very high corporate and governmental debt levels will result to many companies having unsustainable debt levels, therefore causing them to become distressed.

Rucker Capital Principals, who have advised on billions of dollars of financial transactions, point to the following fundamentals that indicate the probability of this asset decline is high:

1. Stock prices are very high as a percentage of Gross Domestic Product (“GDP”)

As of September 22, 2017, the total value of the stock market as a percentage of GDP was 135.1% which indicates that stock prices may be overvalued. GDP represents the total value of goods and services produced in the market. Rucker Capital believes that this fundamental ratio of GDP and the changes in GDP should have a relationship to stock prices within a range. The only period where the ratio has been higher is right before the major market decline in 2000.

2. Price to earnings ratios for the S&P 500 index are high compared to historical ratios

As of September 22, 2017, the price to earnings ratio for the S&P 500 index was 24.95 times earnings. This ratio represents how much one pays for each dollars of earnings. This ratio assumes that if there were no growth in earnings it would take 24.95 years to recover or payback your investment. Rucker Capital Advisors, believes that this may indicate that many stocks may be overvalued. This ratio is substantially higher than the 15.67 mean and 14.66 median ratio since the 1800s

3.Federal debt is 105% of GDP

Federal debt is currently 105% of GDP. This is very high compared to historical levels. Federal debt to GDP has increased dramatically since the 2007 Great Recession. This high debt to GDP severally limits the flexibility that the government has in the event of any financial downturn

Rucker Capital Advisors, LLC believes the probability of asset prices decreasing is higher than the probability of asset prices increasing

4. Since 2007, worldwide debt has increased by over $57 trillion and is in excess of $199 trillion dollars.

Mckinsey & Co. one of the leading consulting firms has indicated that Global debt has increased to $199 trillion since the 2007 Great Recession. These higher debt levels combined with higher interest rates can make servicing this debt increasingly difficult for highly leveraged corporations. This combined with a decline in asset values can lead many corporations to become distressed

Rucker Capital’s Philosophy

Fear is the greatest obstacle to learning. But fear is your best friend. Fear is like fire. If you learn to control it, you let it work for you. If you don’t learn to control it, it’ll destroy you and everything around you.

– Cus D’Amato


Although most people are focusing on the current rapid gains they have experienced in their stock portfolios, Rucker Capital Advisors believes that the fundamentals indicate that those that are positioning themselves to take advantage of distressed opportunities when they present themselves will likely be the real winners over the next three years. However, these returns are not without high levels of risk, so one must act prudently and not commit more capital than they can comfortably afford to loose.

Rucker Capital Advisors, LLC is currently sponsoring a company that is raising capital through a private placement to accredited investors only, that will focus on distressed opportunities. For those that may have an interest in learning more can contact Rucker Capital Advisors, LLC at (201)

S&P 500 Bull Markets Since WWII

Today’s bull market is second longest since WWII