One of the constant things you hear from the Financial Media Talking Head on TV and in print is that the CAPEX spending will come back with the vengeance and drive the US Economy forward. Despite the stock market being up over 150% in the last 5 years and the economy exhibiting various signs of strength, CAPEX remains in the dumps.
Will it turn around and be the next growth driver?
No chance in hell. Listen, there is a huge disconnect between what the stock market and the perceived economic strength is saying and what the CEO’s see on the front lines. Simply put, they don’t see the growth the stock market is projecting and they are not spending because of that. This adds credence to my point of view that the stock market has long disconnected from any sort of economic reality and is now in a bubble territory. If anything, I would expect CAPEX to keep declining as the bear market of 2014-2017 hits.
Can Corporate CAPEX Drive The US Economy Forward? No Chance In Hell. Google