Derek Holt, assistant chief economist with the Royal, said a major factor is the healthy market for corporate bonds, which is providing companies with cash. As well, banks are not being as stingy with loans as they were 10 years ago, though Holt acknowledged that lending it getting tougher to come by in the United States.
Holt said corporate balance sheets are generally in good condition, with debt-to-equity ratios the lowest they've been in decades.
Tighter inventory controls, better consumer confidence, and low lending rates were also given as reasons for optimism.
