Earnings Booming While Stock Prices Slide, Safety In Cash

<p>"Companies world-wide, particularly in the US, were over-earning pre-Covid via excessive debt issuance and underinvestment in their businesses. The gap between profits and GDP was extreme. With higher interest rates, cash is becoming a viable alternative to risky assets. Quality of individual securities owned will likely matter more to the overall portfolio return," says Rob Almeida. </p><p><br></p>