America's goods producing equipment is getting old and the replacement of this equipment is likely to become a bullish force for the economy. The last time the corporate sector allowed its capital stock to get this old and obsolete was back in 1958. The following year experienced a 19% swing in spending activity. Many US corporations are sitting on large amounts of cash waiting for the right time to resume normal levels of capital spending. According to Morgan Stanley's Vincent Reinhart recently identified this as one of the four fundamentals behind accelerating economic growth. (VIEW LINK)
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