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To: Jacob Snyder who wrote (10176)	5/16/2002 3:13:14 PM
From: JakeStraw	Read Replies (2) \| Respond to of 10934

JS, Got an openings! :^)

To: Jacob Snyder who wrote (10176)	5/16/2002 3:33:32 PM
From: puborectalis	Respond to of 10934

Edward Kerschner, global investment strategist at UBS Warburg, feels that equity investors are overly sceptical about the prospects for capital spending. "We believe current equity market levels imply that globally, capital expenditure is likely to fall between 5 and 10 percent by the end of 2003. A more believable scenario, in our view -- consumption growth of around 2 percent and flat capital investment growth two quarters from now -- implies that the global equity market should be 17 percent higher," the strategist told clients. He pointed out that three consecutive quarters of profit growth always lead to capital expenditure growth. "Companies are more likely to commit to capital spending once profits are growing again, and the growth looks to be sustainable. In each and every episode of U.S. profit recovery in the past 50 years, capital spending unambiguously increased following three consecutive quarters of positive year-on-year profits growth," Kerschner said. He surmises that capital spending growth will be positive in the next quarter after having bottomed in December