How so? At least according to leading-edge capitalist theory, companies today are much better managed than the sprawling old-day conglomerates of old. Far from eating their seed corn, they've largely accumulated cash stockpiles during the recent bull market. The picture is complicated by QE, which made it possible to obtain cheap financing for acquisitions, so we saw a wave of M&A activity in 2015 and the year before, in some industries like pharma and tech. But there is still room to deploy capital, though, especially if assets get cheaper in a bear market.
A lot of interesting stuff on the horizon that pessimists (including some on this forum) would dismiss as fads only a few years ago. Now, they're starting to sound like Krugman and his famous comparison of the Internet's impact to fax machines. Few -- and I certainly did not -- saw the brilliant, value-creating engine that is Facebook. Now, we have witnessed a sea-change in artificial intelligence capability, self-driving cars are just around the corner, CRISPR is revolutionizing biology, VR is arriving, and former high-tech innovators like Intel are now in a once-unthinkable permanent decline as a new paradigm sets in.
There is so much wealth yet to be created that it boggles the mind. It's an interesting perspective shift: that perhaps the conventional wisdom that corporations are hoarding cash only because they can't find anything useful to invest is 180 degrees from the real truth.