Investment in new facilities and equipment during this economic recovery has been well below the historical average. The French bank Société Générale noted in a recent report that today’s capital stock is older than at any point since 1964. Among the reasons why corporate managers have delayed these types of investments are the uncertainty created […]
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Market Rotation
After closing lower on Friday, the S&P 500 is now down year-to-date by a little less than 1%. Despite the decline, the index is only about 4% below the all-time highs it reached in March. While the fall has not been that dramatic so far, market bears seem to be making a lot more noise […]
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Watch out for Financial Shenanigans
In any market environment, it is important to understand the risks and the potential downside associated with a particular security. When the market moves higher for a sustained period, such risks increase. Under these conditions, it is more important than ever to review financial statements with a watchful eye. In 2013, the stock market’s growth […]
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The Role of Perception on Short-Term Market Performance
Last Wednesday was Janet Yellen’s first press conference as the Federal Reserve’s chairwoman. She commented on the “considerable period” language in the Fed’s monetary policy statement, which refers to the length of time between when the Fed will end Quantitative Easing and when it will start raising interest rates. In response to a question from […]
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Trapped Cash Continues to Grow
According to research by Bloomberg, the largest U.S.-based companies increased the amount of cash held offshore by $206 billion last year. This is cash kept in foreign countries to prevent U.S. taxation. As a result, these multinational companies have now accumulated $1.95 trillion of offshore profits, up 11.8% from 2012. Three companies – Microsoft, Apple […]