Rise of the Machines
CNBC had some guests on this morning talking about the advancements in technology, and the trouble that this will place on the labor force in the years to come. We agree and view the technology sector as a key contributor to growth for this millenium… albeit not sure how to fix the labor issue, which is why deflation remains a real fear.
Here is an article from Dr. Ed Yardeni that shows this impact over the last 15 years. It is real and evolving quickly!
Caution has reigned in many corporate board rooms since the financial crisis of 2008 and in the following years various issues arose from a debt crisis in Europe to fiscal issues in the US that resulted in more postponements of usual capital spending as corporations built up cash reserves. We think capital expenditures have been postponed too long, and board rooms will start aggressively embracing machines as a way to maintain these current high profit margins.