Note

Great (Cap)Expectations

Capital spending has begun a seminal shift as the challenges from inflation, global unrest and supply chain disruptions form a new backdrop for executive decision makers.

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July 1, 2022 | 15 minute read

Business investment has lagged for the better part of two decades, and as the Great Moderation comes to an end, the spending environment is set to change. What will a broad-based capex boom mean for capital markets? In this paper, we analyze the various causes and implications of this spending shift and explore potential areas of opportunity we believe it provides for investors.

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Andrew Korz

Director, Investment Research

Brian Cho, CFA

Managing Director, Head of Quantitative Research, FS Chiron Funds

Lara Rhame

Chief U.S. Economist + Managing Director

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