Apple’s blowout quarter this week increased its cash holdings to almost $100 billion, a staggering amount that casts a spotlight on what may prove a big catalyst for the U.S. equity market in coming years. U.S. corporations are sitting on record levels of cash – nearly $1 trillion for companies in the Standard & Poor’s 500 index – but with the exception of high dividend-paying stocks this past quarter, that cash pile has done little to boost share prices. Investors often shun companies with excess cash as they fear management will negotiate expensive or ill-advised acquisitions, or buy back shares when the stock is far from cheap.
