Money Money Everywhere, But Not A Drop To Spend

With the majority of Q2 10Qs in, cash & equivalent for the S&P Industrials (S&P 500 less Financials, Utilities, and Transportation) is set to post a new high. The increase from the Q1,’09 period appears to be from reduced expenditures, cash flow and not from changes in membership (actual membership change slightly reduced cash). While cash has hovered in the $600 - $665 billion range since 2004, the current issues calculate out to the $700 billion mark. Additionally, the make of the asset, the amount held as cash and the amount held as short term investments, has changed, again. The change in 2008 to cash and away from investments (ie: commercial paper) has now reversed itself from the pre-liquidly scare period, and is another example of corporations trending back into the market (just a toe in the water).

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