The second reason why stocks are so high is that companies have accumulated a huge cash hoard earning nothing sitting on balance sheets.
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That less cash devoted to such things is now sitting in their balance sheets.
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Moreover, corporations currently have historically large cash hoards sitting on their balance sheets.
There is more than a trillion dollars of cash that is sitting on the balance sheets of U.S. nonfinancial companies.
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The debate over repatriation taxes, which can shrink overseas cash hoards by some 35% if U.S. corporations try to put that money to work, has raged for years and is not going away given the trillion-plus sitting on corporate balance sheets.
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With legacy countries in a state of long-term insolvency, and major banks highly leveraged and with opaque balance sheets sitting on trillions in liabilities, policymakers have resorted to one of the most dangerous solutions in the aftermath of the financial crisis: money printing.
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But, exercise alone is not enough to counter-balance the damage done by sitting for the majority of our waking hours.
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That all securitised bonds must be sold to end investors and not congregate on the balance sheets of banks, sitting atop a pile of illiquidity and leverage?
So, these are companies sitting with a lot of cash on their balance sheets.
While the unemployment rate has remained high, U.S. companies have fixed their balance sheets, with companies ranging from Apple to Pfizer sitting on record cash piles.
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If you want further evidence, these critics would say, look at the balance sheets of Britain's biggest companies, many of whom are sitting on a mountain of idle cash.
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