Caterpillar squashed

Courtesy of Zero Hedge, the global bellwether for mining capex just won’t turn around:

CAT great depression_1_0

Of course, in a world in which fundamentals no longer matter, the stock price of CAT is just shy of its all time high.

Why? Because instead of investing in growing its business, R&D or its future, the company has redirected the bulk of its cash flow to do precisely what we said companies would do under ZIRP until such time as the Fed’s despotic stranglehold on all assets finally ends: buying back its all stock with a relentless fervor, in fact, the higher the stock rises, the more CAT buys back.

CAT Buybacks vs CapEx_0