Telegram

How To Pick Stocks Guide: Part 4 – Impact on Technology, Digital transformation and Artificial Intelligence in the Stock Market

How To Pick Stocks Guide: Part 4 – Impact on Technology, Digital transformation and Artificial Intelligence in the Stock Market

Even though it may not seem like there is a global labor shortage because of the enormous unemployment rates we see, there is. This may be even more exacerbated if geo-political tensions and developments around COVID-19 continue to hamper and act as a regressive force on globalization. When there are not enough workers, one thing that will inevitably happen on a macroeconomic level is that managers will seek labor solutions that reduce, to the extent it will boost profitability, reliance on human labor. This tends to lead to managers using automation and artificial intelligence not to replace human labor completely but to supplement it and act as a major force multiplier. The world is short nearly a hundred million workers, and that number may increase as a result of COVID-19. In addition to the already ongoing global labor supply shortage, the pressure on many sectors of the economy to increase operating leverage can also augment and accelerate the forces that were already in motion.

How To Pick Stocks Guide: Part 4 - Impact on Technology, Digital transformation and Artificial Intelligence in the Stock Market

Besides being a bullish harbinger for the companies that supply the cutting-edge, labor-replacing technology that will be widely needed by firms, this generally benefits the United States. After all, Silicon Valley will be one of the prime beneficiaries of this secular labor shortage. This is one of the reasons we continue to be bullish on US equities generally. We think there a few key forces that will result in the US decoupling from and exceeding the rate of growth in much of the rest of the world not possessing the same advantages like reserve currency status and deep, developed capital markets. The bottom line is that since 1970 there was a 33% worker surplus over GDP output. We predict the next 35 years will see a massive deficit and it has already begun.

Quick Navigation on this series

How To Pick Stocks Guide: Part 1 – How to Pick Stocks? The birth of “Granny Shots”?
How To Pick Stocks Guide: Part 2 – How We Apply ‘Granny Shots’ To The Stock Market?
How To Pick Stocks Guide: Part 3 – How Does The ‘Granny Shot’ Work In Investing?
How To Pick Stocks Guide: Part 4 – Impact on Technology, Digital transformation and Artificial Intelligence in the Stock Market
How To Pick Stocks Guide: Part 5 – Impacts on Inflation and Portfolios
How To Pick Stocks Guide: Part 6 – How to allocate and create Tactical Portfolios?
How To Pick Stocks Guide: Part 7 – How to create Seasonality allocations and portfolios?
How To Pick Stocks Guide: Part 8 – How do Granny shots brings it all together?
< Previous Next >

More from the author

Disclosures (show)

Don't Miss Out
First Month Free

first 500 users only

FSInsight logo
150 East 52nd St, 3rd Floor, New York, NY 10022

Subscribe to our Free Weekly Report

An insitutional-grade report delivered to your inbox every week.

© 2021 FSInsight. All rights reserved. Developed by HANGAR115.

Illustrations by Karl Wimer.