william the wie
Gold Member
- Nov 18, 2009
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An argument that is more provable in the EU, China and Japan than in the US is that real net economic investment is negative. This shows up mostly in vacant housing, abandoned factories, warehouses or shopping centers and economically useless educations. The causes are varied but it shows up mostly as declining Labor force participation and undervaluation of capital.
M&A or the buying of existing depreciated capital and doing same old, same old pays better than investing in new ventures and new lines of production. The high-tech of the 1990s like Yahoo, Dell, AOL and Microsoft have changed almost entirely in how they make their money in terms of services and products offered. They are now either the established blue chips of Wall St. or has beens.
Without a more focused educational system to keep up with technological change at reasonable cost or at least positive discounted cashflow we will continue to see lots and lots of bubbles. So what is the best investment or speculative strategy for this environment?
M&A or the buying of existing depreciated capital and doing same old, same old pays better than investing in new ventures and new lines of production. The high-tech of the 1990s like Yahoo, Dell, AOL and Microsoft have changed almost entirely in how they make their money in terms of services and products offered. They are now either the established blue chips of Wall St. or has beens.
Without a more focused educational system to keep up with technological change at reasonable cost or at least positive discounted cashflow we will continue to see lots and lots of bubbles. So what is the best investment or speculative strategy for this environment?
