Cheapest stock prices since 1995 point to either value or balky investors

How much has investor sentiment and the global economic outlook shifted in the past six months?

Consider this: stocks have fallen so much during this year-old recession that 2,267 companies around the globe in the MSCI World Index have cash positions above the value of their stock and debt.

Further, that's a level of 'offering investors profits for free' that's eight times higher than the last bear market. Global companies in this category include Bank of New York Mellon (NYSE: BK), Italy's Danieli SpA, and South Korea's Namyang Dairy Products.

The U.S. and global economic slowdowns stemming from both a cyclical trough in the U.S. and the global financial crisis have wiped out more than $34 trillion in stock market value, globally. However, the mark-downs do not, in and of themselves, represent a 'buy' signal for investors, so says economist David H. Wang.

"The values are indicative of a significantly deepening recession and pervasive fear. There's fear of counterparties, fear of a lack of return on investment, fear that a home mortgage of business loan won't be repaid," Wang said. "This fear is perhaps the biggest drag on commercial activity today and until it recedes, corporate revenue and earnings will be constrained, which will make it a difficult environment for stocks."