Buy and Sell Signals, and Other Market Perspectives Message Board

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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives

SPY 691.88

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Jan 30 4:00 PM EST

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Al Greenleaf

GROUND ZERO™

To: GROUND ZERO™ who wrote (53478)	8/12/2013 9:23:54 AM
From: robert b furman	2 Recommendations Read Replies (1) of 222676

Wondering why corporations which are awash in cash, would be less profitable when their horde began to earn a greater return? The main reason corporations are awash in cash is they have not seen a place to invest their cash that will be end user demand driven. If and when the economy is such that end user demand is growing - the hordes of cash can once again be utilized in investment that yield far higher returns than the pittance current low interest rates now yield. Real estate a taboo investment has already turned in most places = end user demand. When the fed does increase rates the nominal value of all the debt that has been flooded will be reduced by the same amount that the increased interest rate alters it. As we build out our oil and gas export business,our current balance of trade will tip to a surplus and our ability to repay the now shrinking obligation will be even easier. As corporation build and invest into growing demand their profits/ cash flow will be phenomenal. This is the scenario that the chief sees. It will be explosive to equities. We may be a corrective wave away from that. My bet is QE taper will shake a lot of fresh fruit off the trees and also provide the last great entry point to a blast off that will be historic. We have come out of the great recession and fear into the future is what the masses have become accustomed to. It is time to change the thinking paradigm.IMHO Bob

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