## US corporate spending intentions
## What exactly are the drivers of capex?
## Return of overseas investments to the US
One additional element that may not be overlooked is the on-shoring of overseas investments back to the US at the detriment of emerging markets. This concerns the challenges emerging markets are currently facing. Rising unit labour costs, social and political tensions in several countries, a lack of reforms and, in general, slower growth have made investments in emerging markets less compelling than before.
The shale energy evolution in the US may be another reason to increase capex in the domestic economy. This should be supportive to US growth and hence corporate earnings. In an environment where earnings growth will become the dominant driver for equity returns this is a crucial element. From a sector point of view, we expect the Industrials, Technology and Financials sector to be the likely beneficiaries.