Trump's plans to resurrect the 'old economy' will hinge on huge shift in the stock market
President Donald Trump used his inaugural address to focus on ways to “resurrect the old economy by making it cheaper to build it here, using taxes, regulations, tariffs and abundant energy,” according to Steven Blitz, chief U.S. economist at GlobalData, TS Lombard.
His chart shows about a 70% share of internal cash being used by companies on dividend and stock buybacks. It also shows the “financing gap” between capital expenditures and internal cash turning negative, “not surprising given the shift to use productive capacity outside the US and, in turn, earn the wide margin” over the past quarter-century.