Markets can’t go up forever… or do they?

Just when I wanted to write this article, markets went down. What a timing! But no, this is not a crash just yet.

I believe that there is no perfect answer to the question above, but let me say this: There might be a limit to growth somewhere, but I am truly not able to spot it and most certainly not any soon. I would even go as far as to say that the only way a limit could be found, would be due to our (humanity) own intervention which would include some kind of mass annihilation or a large-scale natural catastrophe that would wipe out a large chunk of humanity, infrastructure and destroy our gathered knowledge. But even this would not limit our growth, it would rather throw us back a little.

Technology is key

You see, a limit on growth has been predicted over and over again. But whenever we get to the point that we think “this might be it”, a new technological development comes along that puts us back to square one and I believe, that right now, we are just about to be put back to square one – again.

Hyping new technologies is kind of popular. Who among us would not at least hear something about the Apple Worldwide Developer Conference, Tesla, and Space X and it’s promising for an electrified future and space exploration. Even companies like Amazon, Netflix, and Microsoft change our daily lives in ways that our parents could not imagine. But all these developments are not only creating new ideas, they also fundamentally change the expectations in our daily lives, work, and social interactions.

I am not saying that it’s all great. I am saying that it changes things.

The amount of knowledge and experience that is now being shared, almost instantly across the globe with remote access to resources all around the planet, the development in robotics, artificial intelligence, improvements in health care and data analysis are creating an enormous potential. And we are just about to tap the tip of the iceberg. We are still very far from even understanding where all this can and will lead us to.

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Just a look at this chart from Visual Capitalist (really appreciate your work!) shows where we are heading now: Ever-increasing automation, which goes hand-in-hand with the development of IoT (Internet of Things) and a dramatic change of future focus on required education, labor and career perspectives. Where will this lead us?

As long as we are going to explore, research and look for ways to improve our lives and ourselves, the economy will keep growing. And so will opportunities for investors. Understanding this basic principle is all you need to understand why you should be an investor and the sooner you start, the earlier you will be a true part of it.

Disclosure: I am invested in Apple & Microsoft.

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