circuit — Are investors seeing the writing on the wall?

In plain English, this translates into:

Firms' Retained Earnings = Investment - Household Savings + Government Deficits + Net Exports

The above equation clearly demonstrates that business profits are positively impacted by government deficits, net exports and private sector investment.* Household net savings, on the other hand, have the effect of reducing firms' retained earnings. Similarly, balanced budgets and government surpluses have either no impact on profits or have the effect of reducing them.

Fictional Reserve Banking
Are investors seeing the writing on the wall?
circuit

Tim Taylor — Why are U.S, Firms Holding $5 Trillion in Cash?

... the trend toward corporations holding more in cash very much predates the Great Recession; indeed, it was already apparent back in the 1990s. Thus, along with thinking about why events of the last few years have led corporations to hold more cash, we should be thinking about influences over the last couple of decades.

The Conversable Economist
Why are U.S, Firms Holding $5 Trillion in Cash?
Tim Taylor | Managing editor, Journal of Economic Perspectives