BlackRock Sees No Sign Reflation Trade Is Coming Off

The video discusses the fluctuating sentiment in the equity market, influenced by tax reform optimism. It highlights the stability of the market despite shifts in leadership and explores the distinction between the Trump rally and the global reflation trade. The discussion includes the impact of global growth, PMI data, and the breakdown of correlations, which affects stock picking. The video also examines the support of reflation by growth and inflation surprises, and the trends in corporate spending, emphasizing the need for increased CapEx to sustain market growth.

In what ways are companies currently spending their cash flow, and how does this reflect their outlook?

What signs indicate that corporate spending might increase in the near future?