Could poorly managed capex pose a market risk?

Shareholders are pushing for corporate investment to spur topline growth. But poorly invested cash could pose a risk to markets, explains Neuberger Berman US manager Charles Kantor.

US equities have continued to break new highs over recent weeks, as economic indicators have improved and there was an increasing likelihood that the ECB would take monetary action in response to deflation concerns. As we look at the second half of 2014, equity prices should be further buoyed by supportive fundamentals and the favourable economic backdrop. Lower inflationary pressures in the US have increased real purchasing power for consumers. Meanwhile, the Federal Reserve continues its tapering process and M&A activity across sectors remains robust. Despite the short-term focus...