Technology has been a meaningful driver of the current dynamic between inflation and the bond market. The internet, in particular, is changing the way economic health should be measured and, accordingly, the way investors position themselves.
Our classic monetary metrics are doing a poor job of evaluating the health of the economy, as the digital economy is very hard to measure in monetary terms. Technology has created significant increases in utility absent any real inflationary uptick. In fact, it can be argued that much of the technological development to date — and even on the horizon — is deflationary. This is likely to continue……Read Full Article at Pensions & Investments (November 29, 2017)