Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

It is a possibility (that cap ex by business will not keep growing), but that will take at least a good six months before it starts its impact. The reasons are quite simple, business is awash with cash, and the current mood is that there is going to be economic growth, to capitalize on such growth investment maybe required. Until there is clear visibility of consumer retrenchment, business may not retrench that fast. Remeber, however that consumer spending is in the 65% to 67% of the end demand, so the balance, business and government got to spend at twice the rate consumer do to compensate for consumer retrenchment.