Cash at the ready - do equities stand to benefit?

(From Irish Independent)

Many investors are pondering the present depressed levels of stock markets as a once in a decade chance to jump into equities, but rising earning will hold the key to any significant turnaround

Senior Economist

Bank of Ireland Private BankingThe decline in equity markets over the last three yearshas been both dramatic and well documented with the world's major markets falling byclose to 50pc.

By way of example, the Dax, which is the index of the top 30 companies in Germany, has fallen by around 78pc, a loss of close to [euro]1 trillion in value terms.

The NASDAQ in the US has fallen by approximately 80pc over the same period, a loss ofapproximately $8.5 trillion in value terms.

However, one of the remarkable features of the global economy over this period has beenthe accumulation of cash that has occurred, despite the obvious wealth destructioncaused by the sharp falls in equity markets.

The levels of cash on deposit, in money …