CFA Institute Blogs
Risk on! This has been the investor battle cry since stocks bottomed out in the fall of 2011, and global equities have been on a tear ever since, with many major indices rallying 20% or more. Investors seem to be discounting signs of a resurgent U.S. economy, indications that the crisis in Europe may be contained, and a soft landing in China. Or maybe they are just fed up with the paltry yields offered by bonds. Read more
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In part one of “Is the Mountain of Corporate Cash an Illusion?” I argued that the growth in corporate cash balances is not as dramatic as is often reported by analysts, commentators, and the press. In this post, I’ll show … Read more
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Is the mountain of corporate cash an illusion? By comparing cash balances to total assets it may appear so. But what happens if you compare cash generation to profit generation by U.S. businesses? Read more
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