Here is fantastic graphic from Bloomberg that shows US corporate overseas cash holdings:
Day to day market movements tend to distract investors from underlying factors that create powerful long-term trends.
Fundamentally, equities are priced off of anticipated earnings. Investors can get ahead of themselves in anticipating the actual degree of earnings acceleration, but higher earnings are the simplest and most fundamental driver of higher stock prices.
As such, we should not be surprised by the move that is currently going on in global equities:
Last week I was in Amsterdam for the Citywire Global New Ideas conference.
Since Riga is off the beaten path for most fund management companies, events like this give us the chance to meet with fund managers from all over the world and to get a better feel of the market zeitgeist by talking with our European peers.
From an idea perspective, I find that one out of three presentations actually deliver. Some pitches from mutual fund companies are shockingly bad, others can border on the brilliant.