Cash is king, unless you are in Japan. One successful trading strategy there has recently lost its luster, thanks to the Bank of Japan’s never-ending obsession with negative interest rates.
When a global recession looms, investors tend to hug stocks that pay handsome dividends. Cash rewards also have appeal at corporate headquarters. Since the collapse of Lehman Brothers, the S&P 500 companies have shelled out as much as 35% of their spending to buy back shares – even at the expense of capital investments – propelling the U.S. market to a record bull run.