Of course, more persistent capital overhangs may well have been experienced in some sectors, most notably in telecommunications equipment, though that sector accounts for less than 10 percent of business fixed investment. Another leading hypothesis is that businesses were more risk-averse than warranted by the underlying economic fundamentals, especially early in the expansion.
One obvious source of caution was the degree of conviction about the strength and sustainability of the recovery. Concerns about terrorism and other geopolitical uncertainties were likely at play as well.