Market minder stock

Market minder stock

Author: Petushkoff On: 25.06.2017

Blog posts are not selected, edited or screened by Seeking Alpha editors. Firms will eventually have to do something with the money—sitting on cash only nets a 0.

As economic recovery continues and confidence rises, companies will deploy that cash toward a number of bullish outcomes. Some say money buys happiness. This is an older tale than you might imagine.

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Companies were cash-rich before the recession. That cautiousness revved up as the recession hit. When companies saw an economic downturn in the fore, hunker down went into high gear—firms slashed inventories, shuttered factories, lowered headcount, etc.

Random Stock Market Factoids 35 Days Into

The already lean and mean got leaner and meaner. That will be the heart of the rebound.

Folks are still a bit gun shy. That wisdom probably applies to the conditions of aggregate business investment as well. Market minder stock some confidence returns which has been steadily increasing so far this yearthe aggregate activity will eventually follow.

market minder stock

That makes for happier times for stocks in the here and now. The pick-up will happen pakistan forex market or later because—and here is one of the many great virtues of free market capitalism—shareholders will demand it. CEOs sitting on dough yielding less than a percent is not an attractive place for capital looking case based reasoning stock market historical stock-like returns.

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Want even more cash-induced glee? Right now, firms are running so lean, just a slight uptick in revenues is likely to create outsized earnings gains i. A few other features to consider: Lean inventories will force companies to restock as demand picks up along with the economic recovery. Already, economic data shows a pick-up in the manufacturing sector and new orders in particular.

Second, conditions are ripe for spending. The recession has brought about discounts and opportunities firms can take advantage of.

market minder stock

Further, it indicates a belief energy usage will be robust and more expensive in the future—in other words, optimism the global economy is on the mend. Cash may make you feel wealthy, but bigger earnings on the wings of that cash are ultimately the royal road to riches for equities. As negative sentiment subsides and companies become less risk-averse, cash will be deployed in a big way globally—a good thing for stocks and the economy, and more happiness for all.

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