Everyone is saying we'll see how the next six months go. Most CEOs say there is no visibility. Technology has increased the information between demand and manufacturing so you can make immediate adjustments. We used to have huge inventory buildups and then things would slow down for years. Now we have very muted cycles.
Companies are capable of simply calling a halt to spending as soon as they see demand dry up.
That's one thing. The other is we overspent in the previous two years, obviously. This is technology and everyone knows once again what we'd forgotten, and that is technology is cyclical. Yet a lot of investors believe companies will be forced to spend later this year on technology if they expect to stay competitive. It may not be later this year, it may be off by another quarter or two.