California vs. Corporations: Who’s Outperforming?

Despite the headlines, California paper has handily outperformed the S&P 500! Hard to believe but a six month look back at the iShares California AMT Free Muni ETF (CMF) versus the S&P 500 ETF (SPY) clearly shows that this debt ridden state led by the Governator, has been a better place to invest your money.

With about eight percent outperformance and much less volatility, California municipal bonds have had a great six month run versus the S&P 500. Granted this is a short period of time, but it highlights two key themes moving markets: “too big to fail” and the fear surrounding equities. Continue Reading

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Corporate Cash to Fuel Recovery and Upset Election?

News that non financial corporations now hold near record amounts of cash — over $2 trillion dollars by some measures — reveals a potential powder keg for economic growth and a possible November election surprise.

Should corporations open their wallets and begin deploying that cash via purchasing equipment and hiring workers, the economic heartbeat of the US could start to rally. Continue Reading

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