One of the main bullish arguments or justifications behind today’s stock market rally is that corporations will accelerate their CAPEX spending and hiring. It appears as if some of Americas top CEO’s disagree with such an assessment. Top CEOs downgrade economic growth forecasts, expect to spend less
“CEO expectations for both investment and growth remain well below the potential of the U.S. economy and below what we should be experiencing at this stage of a recovery,” Stephenson said.
While the downbeat mood was blamed on the expiration of tax breaks, this goes deeper than that. There is very little to invest in because of the ZERO interest rate environment over the last decade. Most possible investments have already been made and the economy is not catching fire as most would have you believe.
All of this comes back to the FED and their irresponsible (even criminal) monetary policy. With the US Economy already showing sings of cracking (credit/speculative velocity is dying off) and with our mathematical/timing work showing a severe recession in the US between 2014-2017, the writing is on the wall. Simply put, the stock market is way out of sync with reality.
