Cash Piles Up as U.S. CEOs Play Safe With Slow-Growth Economy – Bloomberg

Cash and marketable securities more than doubled from a year ago to at least $1 billion at 28 companies in the Russell 3000. They include Yahoo! Inc. (YHOO), Dish Network Corp. (DISH) and Fairfield, Connecticut-based GE, which boosted cash almost threefold to $22.1 billion including proceeds of $16.7 billion from the sale of its remaining interest in NBC Universal to Comcast Corp. (CMCSA) in February.

Even as banks aren’t impressed with higher reserve rate requirements, corporations seem to be holding back on holding off on investing everything.

The U.S. economy may cool to a 1.6 percent pace in the second quarter, after growing at a 2.5 percent rate in the first three months of 2013, according to a Bloomberg survey of economists from May 3 to May 8. The projected slowdown reflects the lagged effect from a two percentage-point rise in the payroll tax at the start of 2013 and $85 billion in automatic budget cuts that began on March 1.

I’m curious as to how much of this slowdown is simply because of a lagging recovery, and how much is because investors have recognized that even the American market is not invincible (i.e. whether improvement is just slower than before, or if they simply do not expect consumer purchasing to reach the heights it was previously at).

Cash Piles Up as U.S. CEOs Play Safe With Slow-Growth Economy – Bloomberg.


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