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winds down and the news that the Federal Reserve is going to start tapering their stimulus. Not to mention, both people and companies are sitting on a record amount of cash, which is set to be 50% higher than they had just 5 years ago. This is because during the pandemic, businesses scaled back on investments, dividends, and share buybacks. And instead, they loaded up on cash and low interest rate debt. This in theory would insulate them in the event of another unexpected market catastrophe. But it also means they have a lot of resources at their disposal if they need it, which could cause the market to go even higher. Now, yes, it's true that their debt level also increased, but at these interest rates, it's pretty much like free money. Just consider that the US inflation rate was about 5.4% throughout the entire summer. So, if a company's able to borrow money at a lower interest rate than that, then not only are they getting a totally free loan, but they're also getting paid to borrow money. What a concept. Now, homeowners also fall into this category, who saw a record boost of equity over the last year as real estate values continue to climb. As far as where we go from here, we're
What a person said is shown in their own words and is never translated. The link goes to the exact second in the video.
