“We couldn’t help but notice our inbox’s recent accumulation of economist and analyst notes predicting a healthy pickup in capex this year. We do find the case mostly convincing. But this recovery has made all predictions of accelerating growth look foolish, and quite a bit of humility about this one is appropriate.”I wrote those lines in March 2014. Good thing I added the caveat about humility because everyone was dead wrong, as capex and business investment overall continued to lag right through the autumn of last year.*(Source: 2017 Economic Report of the President.)Recent notes from Deutsche Bank and Goldman Sachs have spotted anew the favourable circumstances for US capex, using most of the same arguments as before: the capital stock is old, borrowing is cheap and easy, corporate
Cardiff Garcia considers the following as important: investment, Uncategorised
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“We couldn’t help but notice our inbox’s recent accumulation of economist and analyst notes...