A worldwide capex boom? I seriously doubt this is possible.
The world economies are broke, and the world's Mega corps are operating way in the red. Still. They will still need to rollover old debt, and refinance/re-subsidize with moar cheap debt.
Even with given essentially free ESG money for over a decade, these companies still focused primarily on stonk buybacks, executive compensation and mergers, instead of capex. Because they had nothing, no expansion at all to invest in that would give any kind of real world return, and they knew it. And they still don't.
Because when you already own monopolies on production and supply chains all over the globe, there is nowhere left to expand to.
Increasing capex with historically high borrowing rates? With the macro headwinds unchanging?
I don't think so. They will sit on their thumbs and continue to short this market.
And when Fed rates fall again, they'll just go back to the same ol' stonk buyback and exec compensation routine. It's all they know.
Maybe this is the future market "boom" that Russell is referring to.
Poll
