The Technology Sector’s Run Will Not Slow Down
So long as the COVID-19 pandemic is a part of our lives and a continued part of everyday reality, the appreciation in the values of stocks of technology companies will continue rising. What we’ve witnessed over the last few months is a transition of our overall economy. It has transitioned from a brick and mortar model to a mobile model. Ken Kurson posits that anyone who didn’t foresee the upward trajectory of technology has been fooling themselves.
Surely, few could have forecast the pandemic itself. But it’s the change in our overall economy and the way we as a society operate that was certainly bound to become as tech-reliant as we have. In some ways, the Coronavirus pandemic simply accelerated this movement. Technology has afforded people the ability to comply with social distancing guidelines mandated by governments and the authorities in ways that they otherwise wouldn’t ever be able to.
Indeed, according to astute observers like Ken Kurson, the reliance on technology and technological products throughout the pandemic actually make a lot of sense. We’ve seen e-commerce giants like Amazon absolutely thrive during this period of time, at the expense of brick and mortar supermarkets. The reason is fairly clear. People can shop conveniently and safely online, while foregoing concerns of any human-to-human contact. This ensures that the consumer never has any exposure to the risk of contracting the Coronavirus.
Unfortunately, these trends which the Coronavirus has indeed accelerated, have had an adverse affect on the financial health of these businesses. It’s a sad reality; and we’ve already seen hundreds of small businesses have to shut down because of this. Let’s hope the situation improves with time. It’s in everyone’s best interest.