Why cash may still be king. Plus, Enbridge’s big U.S. acquisition takes analysts by surprise

News Snapshot:

Ajay Rajadhyaksha, Barclays global chairman of research, published his investment outlook recently with the surprising title Cash is still king. He believes that higher risk assets like stocks are unlikely to outperform when investors can generate over 5 per cent risk-free by sitting in cash. An expected slowdown in global economic growth also lies behind the attractiveness of cash. Barclays expects ongoing sluggishness in China, stagnant economies throughout Europe and a mild slowdown in the United States and this will limit corporate profit growth. Mr. Rajadhyaksha does not expect slower growth to result in lower borrowing costs. He sees higher...