This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Cash and Debt

As the calendar flips forward from 2013 to 2014, there are a number of stories that both dominated the headlines in 2013 and will continue to do so in 2014. Additionally, new stories will undoubtedly develop, but it is worth reviewing some of the biggest trends and stories from this year, discussing what they could mean for next year, and what they mean for you. Cash and debt are interconnected, as we have discussed throughout the year in various forms – podcasts, newsletters, and blog posts. They are, in effect, two sides of the same coin.

With that said, let’s take one last look at (2) headline stories from 2013 that will dominate the markets in 2014.

One headline story that dominated headlines, generated much discussion, and even garnered the attention of the administration in Washington D.C., is the burgeoning cash pile on corporate balance sheets. Now in the trillions of dollars, different groups of people have advocated that this cash be put to use. Some have said that firm should repatriate, or bring back from overseas, cash that has been earned overseas and invest it in the U.S. Others had indicated that these firms should use this cash to expand operations and hire more personnel. Lastly, the so-called “summer of the activist investor” saw a large number of activist investors agitate for firms to aggressively return cash to shareholders.

Find out what's happening in Tri-Borowith free, real-time updates from Patch.

That debate will continue into 2014.

China has been leading the world in GDP growth rates for the last several decades and is poised to, within the next several decades, become the world’s largest economy. In addition to increasing economic growth, the Chinese government has also begun to establish a sphere of influence with the Air Defense Zone, and continuing spats with Japan over disputed islands have been in the news. Another story that has received less attention than economic growth is the growing debt level. Currently, official local debt levels total more than $3 trillion USD, and this is not even taking into account the other forms of debt that permeate the Chinese financial system.

Find out what's happening in Tri-Borowith free, real-time updates from Patch.

A market moving story indeed.

Here’s to a Happy (and profitable) New Year!

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?