Source: Unigestion, Bloomberg, as of 23 July 2021.
Earnings season is in full swing. Beyond sales activity and profitability, corporate guidance on future plans of how earnings will be used has direct implications for the macroeconomic context and financial markets. Firms have built up a significant amount of cash (and cash-like instruments) on their balance sheets following the coronavirus crisis. As our chart shows, while the large-cap firms in the Nasdaq 100 are outpacing others, the phenomenon holds true even when we look at the small-to-mid-cap Russell 2000.
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