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Article: STRATEGY: Playing the capital spending cycle.
- Article from:
- Fund Strategy
- Article date:
- April 17, 2006
CopyrightCOPYRIGHT 2006 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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At the half-way point in the capital expenditure cycle, companies still have a lot of cash to spend on expanding their business, creating investment opportunities across several sectors.
An extended business cycle is under way, with favourable prospects for a range of riskier assets. Company cashflows stand at extraordinarily high levels, with ample cash in hand and low external financing needs. Companies are increasingly putting their high cash balances to work with business expansion in mind. But how can investors best play these themes?
Robust fundamentals have enabled equity markets to navigate successfully through temporary slowdowns or ...