Andrew, you're an intelligent guy -- do you really believe that future technology is going to create "fewer profits instead of more profits"?
In the short run, and in the aggregate economy, yes. In the long
run, no. And certainly the companies that are responsible, such
as JDSU, will benefit, and reap substantially higher profits.
Technological innovation has a deflationary effect, IMO, and
as we are already seeing in many sectors of the economy, it
allows for more efficient price competition. This is a boon for
the consumer, but does not improve the financial condition of the
merchant.
Note that S&P 500 earnings will be flat if not slightly lower for
1999 compared with 1998.
AA
(I am long JDSU, and I'm not selling) |
