Should CEO's be leveraging their cash reserves and spend on business growth, or just wait more (... and more) to see there economy improves? That's a trillion dollar question.
Here is a good article.. from John Melloy.
It’s said sharks will die if they stop swimming. The same could be said for the corporations hoarding record amounts of cash on their books right now in a board room paralysis rarely, if ever, seen before.
“Companies are getting closer to the point at which they will either have to accept slower growth or put capital to work,” said Jason Trennert, founder of Strategas Research Partners.
Corporate profits relative to GDP are near 40-year highs, according to Trennert, at more than 10 percent. These fortress balance sheets made sense coming out of the worst financial crisis since the Great Depression, but the economy is supposed to be well into a recovery by now.
I talk to many businesses, small and mid-size, for my work. I see their pain and part helplessness closely. Many of them so much on to-do list and planing board, but they are looking at bigger companies and markets for any clues.