In his latest Forbes column, Kenneth Fisher looks at some technology “laws” that he says will continue to increase productivity and boost the economy.
Fisher talks about Moore’s law, which states that integrated circuit density doubles about every two years while costs halve, making for “the single most powerful positive economic force of our adult lifetimes, akin to the steam engine’s 19th-century impact.” He also discusses other principles guiding the sector, like the Shannon-Hartley Theorem and Kryder’s Law. These and other concepts “are colliding into one another in ways hard to imagine,” Fisher writes. “While I like tech stocks, the big beneficiaries will be the rest of us–and firms that derive increased productivity or conception of innovative products and services.”
“Investors covet past improvements but also always believe pricing unimaginable future creativity and efficiency gains is Pollyannaish,” Fisher adds. “And they’re always wrong. Bet on it. Productivity will rise as this bull market endures.”