Capital, ag & industrial equipment

摘要

We're smack ill the middle of a "long, drawn-out business cycle," Eli Wainwright & Co. told MSCI Forecast attendees, but we should prepare ourselves for the "mid-decade boom." Economic recovery began from "scratch" after the announced end of the Iraq War, agreed James Meil, chief economist of Eaton Corp., and has been slowly building through 2003. This time, Meil believes it's the 'real thing.' Interest rates are about the lowest they've been in 40 years, presenters said, and bank-lending standards are beginning to ease. Industrial stock prices are going up as well, which may put execs in the frame of mind to green-light capital expansion spending. And, while Bush's tax legislation won't do the heavy lifting on its own, it may be enough to push fence-sitters to opt for capital investment.