Though metals and mining equities account for only 17% of the MSCI World Natural Resources Index, their drastic underperformance since 2011 can still be felt in portfolios. Over the last decade, as demand from China and other countries pushed up the slope of demand curves for industrial metals, a supply response by the mining industry…
In first quarter 2014, companies bought back the largest dollar amount of their own shares since 2007. With the S&P 500 Index reaching new highs, should investors be concerned that 2014 might set a new record level for share buybacks? Buybacks previously peaked in third quarter 2007, a famously bad time to buy US equities….
A string of headlines over the last few months has thrust the issue of cash held by the foreign subsidiaries of US companies back into the spotlight. First was Apple Inc.’s announcement that the company was increasing its dividend and buying back more stock while at the same time issuing $12 billion in debt to…
A closer look at the mounting cash on corporate balance sheets reveals more questions than answers as to how it may benefit shareholders.
Equity investors are right to be focused on corporate earnings, given that a lackluster recovery and slowing global growth may weigh on sales. However, profit margins may be of lesser concern, due to index mechanics and the limited correlation between margins and returns. S&P 500 companies have enjoyed a stunning rebound in profits since the…