Jan 14, 2012

US Economy: The Recent Bounce In Investment Spending Will End

The recent bounce in investment spending (and housing) will end, with bleak prospects for 2012, as tax benefits expire, firms wait out so-called “tail risks” (low-probability, high-impact events), and insufficient final demand holds down capacity-utilization rates. And most capital spending will continue to be devoted to labor-saving technologies, again implying limited job creation. - in Economonitor

Related, Materials Select Sector SPDR (XLB), Energy Select Sector SPDR ETF (XLE)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.