ICangles Investment Post…

Periods of prolonged economic prosperity are driven by technology innovations. Today’s low growth economic paradigm stems in large part from the absence of such a driver. Growth in the nineteen eighties and nineties was driven by microprocessor innovation. In the middle of the twentieth century it was the oil economy characterized by the internal combustion engine. Preceding this, the Roaring Twenties witnessed the electrification of the world. It’s a regular pattern of periods of wealth creation around disruptive technologies interspersed with periods of economic turbulence. The good news is despite today’s poor economy this long cycle argues that another innovation and period of growth isn’t that far off. Some educated guesses about the nature of the next big thing driving a prolonged boom in the stock market can even be made.

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