By Kris Moreton, CFA, Senior Vice President, Fixed Income Client Portfolio Manager; Alice Flynn, Director, Short-Term Fixed Income Products

Low rates for the foreseeable future are a great reason to consider a more active approach to your cash position.

Even when investors try to be logical, it’s challenging to keep emotions at bay when markets are in free fall. And when faced with capital losses, many well-planned investment strategies can be quickly forgotten in the hope of preserving wealth. Investors sometimes opt to move to cash, which may provide a short-term sense of relief. But in the long run, this knee-jerk reaction can significantly erode their wealth.

Timing rarely works in investors’ favor

We recently saw an influx into cash in response to the COVID-19 pandemic. The Morningstar Money Market – Taxable category gained significant cash flows in April and May when market volatility surged. Investors who allocated to cash

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Movie theater operators are looking for a Hollywood ending.

Slow to reopen amid the coronavirus pandemic, theater chains are reeling from low attendance and a lack of new films to lure moviegoers, as studios continue to push back premieres. Theaters are mostly or completely shut down in New York City, Los Angeles, and San Francisco—representing about a quarter of domestic box-office sales and the key markets that studios need to debut their big offerings.

“It’s a perfect storm,” says Rich Greenfield, a media analyst at research firm LightShed Partners, who says that theater operators are burning cash and may need to reorganize debt in bankruptcy if they can’t kick-start sales soon. “Consumer behavior was already shifting toward streaming and smaller screens. It’s the absolute worst possible time, crushing movie theaters.”

Some chains are raising funds as they try to survive the next few months, when a feared new wave of

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A price-to-earnings (P/E) ratio is a common metric for measuring a company’s valuation. It can be calculated by dividing a company’s share price by its annual earnings per share — or by dividing its market cap by annual net income.

While the metric can be a reliable data point for understanding part of the full company story, it should not be the only statistic used to contemplate the profitability of an investment. Using (NYSE: CRM) as an example, we will explore how using free cash flow and operating cash flow — as well as P/E ratio — gives us a more holistic approach to valuing a company.

A person using a calculator at a desk and writing in a journal

Image source: Getty Images.

Why net income is not perfect

A talented CFO can make accounting adjustments for a company’s balance sheet to create the impression that net income is better than it actually is. Deducting non-recurring expenses, stock-based compensation, or additional

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Japan’s currency in circulation and bank deposits rose at a record pace in September, data showed on Tuesday, as companies and households hoarded cash instead of spending it due to uncertainty over the coronavirus pandemic.

The data underscores the fragile nature of Japan’s economic recovery, which is heavily reliant on overseas demand as consumption and capital expenditure remain weak.

Money stock

Japan’s M3 money stock — or currency in circulation and deposits at financial institutions — rose 7.4 per cent in September from a year earlier, marking the biggest increase since comparable data became available in 2004, Bank of Japan data showed.

The rise topped a 7.1 per cent gain in August. Bank deposits surged a record 15.5 per cent in September from a year earlier, while cash in circulation grew 5.7 per cent, the data showed.

Savings surge

“What’s happening since spring through summer is that households are curbing

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The government may consider allowing India Inc to deposit GST on cash basis to help them tide over the liquidity woes during the Covid-19 pandemic, a PwC report said.

It said while formalising its support strategy for the industry in the next phase, the government could also consider suspending GST payments for select sectors during the Covid-19 period.

In its report titled ‘Reimagining [email protected]’, PwC said cash liquidity support schemes that advance business continuity are the need of the hour. “The government has announced a timely budgetary support scheme in line with the relief packages of various developed nations. Despite these steps, much ground remains to be covered,” it said.

Issues and suggestions

The report said that some key issues which require immediate attention of the government before taxpayers get entangled in long-drawn litigation include eligibility of ITC on expired stock, intermediary services and taxability of discount schemes.

“The government

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DENVER, Oct. 9, 2020 /PRNewswire/ — Today, the Board of Trustees (the “Board”) for the Clough Global Dividend and Income Fund (the “Fund”) has declared a monthly cash distribution of $0.1008 per common share, payable on the dates noted below. The Fund’s managed distribution policy is to set the monthly distribution rate at an amount equal to one twelfth of 10% of the Fund’s adjusted year-ending net asset value per share (“NAV”), which will be the average of the NAVs as of the last five business days of the prior calendar year.

The following dates apply to the distributions declared:

Ex-Date: October 19, 2020
Record Date: October 20, 2020
Payable Date: October 30, 2020

Ex-Date: November 19, 2020
Record Date: November 20, 2020
Payable Date: November 30, 2020

Ex-Date: December 18, 2020
Record Date: December 21, 2020
Payable Date: December 31, 2020

A portion of the distribution may be treated

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(Bloomberg) — An upcoming surge in euro-area bond sales should be more than swept up by the record amount cash of sitting idly in the economy, potentially adding fuel to the rally sweeping across the region’s debt markets.

Next week, bond offerings in the eurozone are expected to rise five-fold, with Germany, Italy and France, among others issuing a combined 30 billion euros ($35.4 billion) worth of securities, according to Commerzbank AG. That’s still less than the amount of debt coming due.

The supply also comes as excess liquidity in the euro area ballooned past the 3-trillion-euro mark for the first time ever last week, thanks to unprecedented support from the European Central Bank.

chart: Italy sells debt next week with yields at record lows

© Bloomberg
Italy sells debt next week with yields at record lows

The monetary authority’s liquidity injections have already pushed yields on some of the region’s riskiest borrowers to record lows. With speculation now growing that

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House Speaker Nancy Pelosi of Calif., tears her copy of President Donald Trump’s s State of the Union address after he delivered it to a joint session of Congress on Capitol Hill in Washington, Tuesday, Feb. 4, 2020. Vice President Mike Pence is at left.

  • JPMorgan adviser Colleen O’Callaghan told CNBC’s “Trading Nation” Thursday that she is telling her clients to reduce their exposure to equities and hold more cash due to the fiscal stimulus gridlock in Washington. 
  • O’Callaghan, who advises high-net worth customers said: “We really need to see that stimulus package. If we don’t see that stimulus, I do think there’s going to be more volatility and we need to prepare for that.
  • She said she plans to employ the cash once there is greater clarity on the US economic recovery. 
  • A Biden victory won’t necessarily be bad for markets, as increasing corporate taxes won’t
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Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • Many freelancers have taken a financial hit since the start of the pandemic, and most government relief has run out.
  • If you need to increase your cash flow to save or pay bills, financial planner Ben Henry-Moreland recommends looking first at your spending to see where you can cut back.
  • Then, look into any government programs that are still available, such as the EIDL, and consider reducing your health insurance costs if you’re able.
  • You can also reach out to your network to get more work, and reduce your quarterly tax payments to the IRS if your income has gone down.
  • Get Personal Finance Insider’s free guide to financial planners
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By Elisa Anzolin and Gavin Jones

ROME/MILAN (Reuters) – Italy’s love affair with cash is fading. The coronavirus is turning Italians off notes and coins and the government is launching a raft of incentives to accelerate the trend, believing plastic payment can curb rampant tax evasion.

The Treasury estimates some 109 billion euros of tax is evaded annually, equal to about 21% of the revenue actually collected. The government believes the problem can be tackled by boosting digital payments which, unlike cash, leave a trace.

Prime Minister Giuseppe Conte is offering refunds on some money spent electronically, tax breaks for outlets with card machines and a new 50-million euro ($58.93 million) state lottery for card users only.

The coronavirus, which forced the government to lock down the economy between March and May, is helping his efforts.

“We have seen a surge in digital payments since the lockdown, I think mainly

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