US 'Less Desirable' for Capital Investment, According to AFP Survey
A new survey conducted by the Association for Financial Professionals (AFP) reveals many companies aren’t planning to change their short-term investment strategy following the downgrade of the US by Standard & Poor’s (S&P), but a quarter of financial professionals now say that S&P’s action makes the US a less desirable place for capital investment.
The survey, conducted on 9-10 August 2011, asked five questions focused solely on possible impacts to corporate investment strategies and access to capital – not on the validity of S&P’s analysis.
“What we are hearing this week is far different from what finance pros were telling us in June,” said Jim Kaitz, AFP’s president and chief executive office (CEO). “While the US may still be the best place to park idle cash, some companies think the US isn’t the best place to deploy strategic cash. That means they may look elsewhere when expanding their business or hiring staff. “
Key findings of the report include: