$837 Billion in Cash

That’s how much cash that non-financial companies in the S&P 500 are currently sitting on. That’s worth about 10% of their market value which is much higher than normal.
The odd thing about this gigantic cash pile is that these companies are barely being paid any interest by keeping this money in cash. It shows you just how scared they are.
Matt Krantz points out that the amount of cash is up 26% in the last year. By contrast, dividends are only up 5.9% and M&A spending is down -9.5%. If the economy can avoid a double dip, then there might be enough fuel already to power a rally.

Posted by on July 28th, 2010 at 9:19 am

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