This is the final installment of our five-part series. Readers can view the previous posts here: Part I / Part II / Part III / Part IV
The fifth pillar of Ed Yardeni’s “Roaring 2020s” thesis is the idea of technology as a universal investment theme. He advises investors to view all companies through the lens of technology, whether they are makers or users of it. I wholeheartedly agree with this perspective, as I believe that the rise of AI and robotics, in particular, will fuel an economic boom that will lift all sectors of the economy as well as the stock market.
Yardeni emphasizes the importance of assessing how effectively companies leverage technology to enhance productivity and to drive growth. This is a crucial point, as companies that are able to embrace and integrate technology into their operations will be the ones that thrive in the years to come.
The simultaneous rise of AI and robotics is a powerful force that is poised to transform the way we live and work. AI is already being used to automate tasks, improve decision-making, and develop new products and services. Robotics is also making significant strides, with robots being used in a variety of industries, from manufacturing to healthcare.
The combination of AI and robotics has the potential to unleash economic growth that is much larger than most people think. This is because these technologies can be used to automate tasks that are currently done by humans, freeing up workers to focus on more productive activities. They can also be used to develop new products and services that would not be possible without them.
Will there be disruptions to the job market? Undoubtedly, perhaps the largest history has ever seen.
The American economy has remade itself many times throughout our history, and this time will be no different. Alongside the negative impact of some job displacement, technology will bring the power to create and to earn a new, different sort of living to everyone – and at a cost that would have made things like making an independent movie or creating a new company prohibitively expensive in the past.
In short, these new technologies will democratize even more than they will disrupt.
In addition to its direct economic benefits, the rise of AI and robotics is also likely to lead to a number of other positive outcomes. For example, it could help to reduce poverty and inequality, as well as improve our environment.
As an investor, I believe that it is important to focus on companies that are well-positioned to benefit from the rise of AI and robotics. More specifically, every company an investor considers should now be considered in part based on how well it might be able to expand margins and grow based on these new technologies we’re all witnessing.
As readers of this series know, I am confident that the rest of the “Roaring 2020s” will be a period of tremendous technological advancement and economic prosperity. AI and robotics will be a major driver of this growth, and I am excited to see what the future holds.
