TAKING A CUE FROM INVESTORS

摘要

The financial markets smell economic recovery in the air. Share prices are soaring as investors bet on a second-half rebound of the economy, fueled by tax cuts and ultra-easy monetary policy. After rising by 15% in the second quarter, its best performance in 41/2 years, the Standard & Poor's 500-stock index added to its gains as the new quarter began, rising a further 2.8% in early July. And the dollar is back in favor as foreign investors see the U. S. leading the way to global recovery. Even the tanking bond market reflects rising hopes for an economic upswing: Bond investors are shucking off their fears of deflation and fleeing the safety of low-yielding government securities for riskier equities. The investor enthusiasm is starting to percolate into corporate suites. Encouraged by the ebullient stock market, CEOS are starting to shift their focus from fortifying their balance sheets to expanding their businesses. That bodes well for the recovery. It has been cautious corporate chieftains who have been mainly responsible for holding the economy back by keeping such a tight rein on investment and hiring. While they're not yet partying like it's 1999, top executives are clearly feeling better. "Three, four, five weeks ago, we were very despondent," says G. John Pizzey, president of aluminum maker Alcoa Inc.'s primary products group. "Now, we may be headed in the right direction."