Lack of Demand is the problem
....the declining labor share of income is a decades-long phenomenon with
many deep sources—capital efficiency, technology, globalization, the increased
economic weight of the educated/highly skilled.
From Gave Kal
PS As this excellent piece of research shows we are in a difficult
situation in the world. Big forces (Automation, Globalization, tech, etc….) are
lowering the share of wages/labour in
the GDP vs capital/investor. Since it’s clear that people with less wealth (workers)
tend to consume a greater share of their income we are seeing a lack of demand.
The problem with the world is not a problem of lack of supply it’s a lack of
demand. Even if rates are at zero why is someone going to build a new factory
if the existing factories are working at half potential!
We are in a world with no top line growth (Next year you will sell a bit
less)
Solutions to make money in this world:
1.Buy monopolies/Companies with big market share. They are robbing market
share from the small players. They can grow in a shrinking market.
2.Companies that help cut costs/automate/outsourcing etc… These companies
help to increase the margin.
3.Companies that have a unique product (Biotech etc….) and pricing power.
4.Don’t expect to make real money as a worker, it’s better to be an investor.
5.Don’t buy commodity companies (Products that can be replaced easily)
Share story
0 comentários: