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The conundrum of low corporate investments.

The world markets have seen unprecedented rise and has baffled many analyst with seemingly break of traditional parameters and thier tradional impacts. One of the conundrum is the very low degree of the investements by corporates. This has been the case inspite of low interest rates that prevailed over past few years. Therfore, we cannot fully justify the theory that corporate investments are going down because of rising cost of funds.

This begs us to ask a question. How long is the consumerist tendencies going to last? Are the corporates being bearish on the economy and spending? Are the corporates expecting the economy to slip into a recession? what is it that corporates feel is wrong with the hearty and seeminlgy healthy world economy's pulse? That is not a conundrum, for the answers are clearer. But for now, lets just call it conundrum.

:) Falkor

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