Most U.S. stimulus spending hasn’t even hit the economy yet, as shown in the Morgan Stanley Chart below. Only about 40% has been paid out, and about 30% hasn’t even been allocated yet.
Moreover, the stimulus spending that we’re still waiting for is more geared towards U.S. industrials, and thus we believe is the kind that could deliver more bang for the buck when it comes to stimulating U.S. capital equipment spending and manufacturing activity. The peak effect of stimulus spending hasn’t even happened yet.
(Via Morgan Stanley, Industrials, Scott Davis & Robert Wertheimer, 19 April 2010)
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