U.S. companies are spending on their businesses at a pace not seen in many years. This dramatic increase in spending is the result of companies having stockpiled massive cash reserves during the past administration, holding their wealth – and their collective breath – for fear of what might have been coming down the pike during those years.
Now, most U.S. businesses are funneling those saved cash reserves into their companies at a record pace in order to expand their businesses as well as increase dividends and buy back their shares. The market will determine how these actions are interpreted – by the markets and Wall Street – but I, for one, see these actions as very positive moves – it’s just unfortunate that companies have had to wait so long to realize their full potential! It’s that “all the moving parts” thing that the U.S. needs to increase the capacity of the country.
U.S. COMPANIES SPENDING ON BUSINESSES – cash reserves