Sunday, January 26, 2014

Investor Animal Spirits Spread to Companies Worldwide

This article discussed the growth in the capital expenditures that has been happening in the US recently and the set up for 2014 to be a year in which CAPEX will be increasing drastically.  There is an increase in the purchasing of high-risk high yield bonds and the average demand for a rate of return for certain international securities has decreased.  With respect to growing optimism it is apparent that companies are now willing to take on more debt in order to purchase other companies as well as invest in capital that has been used for extended periods of time due to the recession.  For manufacturing in Europe there seems to be an investment in CAPEX and there is forecasted future investment for the next 5 years.  Finally there seems to be an increase in salaries in some places around the US.  

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