Business investment is a bright spot . . . up 11 consecutive quarters, 10.8% annual rate, running at an all time high rate.

While investment in structures – both residential and commercial – has been depressed since 2008 investment in equipment and software has been boomingThis is consistent with our portfolio companies’ experience.  Our anecdotal experience with our management teams is that the boom is continuing.  The following chart comes courtesy of Brian Wesbury at First Trust Advisors.  One might suggest we could be at a top.  Another observation could be that it has grown over 2X faster than nominal GDP and helps explain the high business margins.  While the chart does undoubtedly look “high” we need to note that companion economic metrics such as inventories are not “high”  Jeb Terry, Sr. July 5, 2012

Aberdeen Investment Management – a guide service for micro-cap technology investment

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