You often hear about how companies are just financial engineering there way to profits. That's often attached to the stigma they aren't spending on new projects and research and development.
Well, it turns out that's just more sloppy rhetoric. In the second quarter, S&P 500 companies spent the most on R&D in ten years.
The point here is, the economic machine is working. Corporations see growth slowing, so they see no choice but to invest the giant piles of cash they've built up. This is no doubt a net positive for the economy in the intermediate term.
Perhaps this in part explains the strength of the 'mega cap, change our world tech stocks'. These are the best type of technologies (mobile, social, web-based) and themes to invest in.
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