In a pandemic, it is better to own a company built on customer data than one with bricks and mortar retail outlets. Indeed, it may turn out to be smarter to own companies rich in intangible assets from any sector rather than bet on the Big Tech companies that have been driving the S&P 500. This will be particularly true if regulators begin to pick apart the business models of Facebook, Google and the like.<\/p>\n
Finally, coronavirus-related digital shifts may put a lot more downward pressure on pricing power than expected, according to Robert Kaplan, head of the Dallas Federal Reserve Bank. In a recent essay on US economic conditions and monetary policy in the wake of the pandemic, he noted how people\u2019s work and shopping habits have changed. They are doing more online, which allows digital platforms to grow bigger, and this in turn has damped business pricing power.<\/p>\n
\u201cTo respond to this trend, businesses are investing substantially more in technology to replace people, lower their costs and improve their competitiveness,\u201d he wrote.<\/p>\n
Read it all<\/a>.<\/p>\n The economic recovery from the pandemic is likely to be led by digital firms and investment – that could mean a slower job recovery and reduced risk of higher inflation: FT column by @ranaforoohar<\/a> https:\/\/t.co\/q19enVV4DQ<\/a><\/p>\n — Tony Tassell (@TonyTassell) October 4, 2020<\/a><\/p><\/blockquote>\n \n