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Strategy Report

Capex: Fears Face Off Against Fundamentals

by Noah Weisberger, Chief US Equity Strategist  

The capex debate is better framed not as boom versus bubble, but as around capacity, leverage, and cash conversion. ROEs have compressed, but revenue growth and margin expansion offer a credible path back. Spenders likely have time to make good on their investments, though the market’s leash may be shorter than anticipated. 

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