While I am no economist, it does look like the economic scenario of today could mirror the roaring economy of one hundred years ago. The terrible Covid-19 pandemic, much like the Spanish flu of 1918, has cost far too many lives and has surely rattled the economy and introduced cultural/business changes, some of which will remain.
As a result, the government has liquified the economy, thus supporting the business cycle. At the same time, the stimulus is funded by Treasuries resulting in upward pressure on yields and benefitting financial services stocks. I suspect that the recovery to a “new normal” will result in an expanding economy supporting a stronger stock market, increased price inflation and higher taxes. For our part, we shall continue to innovate with proprietary investment models to increase portfolio growth for our clients as technology expands the investment horizon.
From “Smoke Signals” To 5G Technology
The expansion of communications over the past 1,000 years has led to a new infrastructure that will speed communications and enable the next generation of technological advances worldwide. 5G represents the fifth generation impacting mobile networks worldwide. This new type of network enables virtual connections to people, machines, objects and devices globally.
The “Glass Battery”
Looks like the next “frontier” in electric automobile production is the exciting development by Nobel Prize winner John Goodnough. The new design incorporates a glass electrolyte and lithium or sodium metal electrodes. The battery does not catch fire or explode as lithium-ion batteries do. The batteries are simply more efficient in every regard.
The Autonomous Vehicle Development
Much like the development of the printing press, Internet and telephone, the self-driving car could create trillions of dollars within the probable economic revolution in the 2020’s. Those that now can’t drive will be more mobile, car crashes will decline and drive time will permit passengers to study as the car delivers them to their destination.
Addressing The Climate Crisis
The current administration is committed to addressing climate change, infrastructure repair and environmental concerns. These ambitious goals can mirror a modern “New Deal” from the Roosevelt presidential era. All these objectives should expand the economy, create jobs and support business expansion overall. Stay tuned!