What Corporate America decides to do with its piles of cash could determine whether stocks have another banner year in 2014, the chairman of S&P 500 Index Committee told CNBC on Tuesday.
On the last trading day of the year, David Blitzer of Standard & Poor's opined on why companies are still unwilling to take the kind of risks that would kick the economy into a higher gear.
"What are they doing? They're buying back stock because they're worried about dilution from stock options," Blitzer said in a "Squawk Box" interview.
"I'd rather see them put that money to work. That's where we got iPhones, and that's where we got everything else we like. We just need another round of that."
(Read more: The great Google, Facebook and Apple cash pile)
Companies aren't making interest on all that cash because of the historically low rates, he pointed out. "Instead of the capitalists sitting there and worrying about uncertainty, they're supposed to take calculated risk, make bets and turn the cash into a bigger economy. That's what we're waiting for."
Aside from the corporate investment issue, Blitzer contended that stocks may have a tough time repeating their gains next year.