Ed Yardeni is a prolific author and also founder and chief investment strategist of Yardeni Research Inc. In a recent blog post on his extremely useful website, Mr. Yardeni detailed the five types of technology that are only beginning to transform the global economy, many of which are being adopted more quickly because of the pandemic.
The first trend is the obvious one – work-from-home technology and media. The emphasis on education software for home use is notable here. Earlier this year, Fast Company magazine published a list of "The Most Innovative Education Companies of 2020″ that investors can track, although few of them are publicly traded.
Telemedicine is the second theme and this one is already paying off for investors. Teledoc Health Inc., a provider of virtual doctor care, is up more than 120 per cent year-to-date. This subsector also includes wearable monitoring devices and related software applications.
Theme No. 3 is the expansion of telecommunications networks.
“The pandemic has slowed the rollout of 5G at the same time as it has increased the demand for the technology to facilitate working remotely,” Mr. Yardeni writes, “the rollout should continue during the second half of this year into 2021.”
Citi analyst Atif Matik believes companies like Marvell Technology Group Ltd., which provides the semiconductors necessary for Samsung 5G equipment, will benefit from this broad technology upgrade.
Mr. Yardeni’s fourth important trend is robotics and automation, and this is an area where I’ve expressed some skepticism. As the post describes, what is now possible through automation is impressive, but until giant robotics providers, like Japan’s Fanuc Corp., start outperforming the rest of the technology sector I am unlikely to invest in the theme.
The final investment theme is batteries, which will be a vital part of a renewable energy future. Mr. Yardeni cites the development of solid state batteries as a potential major development.
-- Scott Barlow, Globe and Mail market strategist
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Stocks to ponder
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Five reasons why September will bring even more market turmoil
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Do seasonal patterns truly exist in the Canadian stock market?
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My dividend portfolio is bruised - not broken
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New sanction threats, same shrugs from Russia’s investors
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Others (for subscribers)
Wednesday’s Insider Report: Executive boosts his position in this Big 5 bank stock
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What’s up in the days ahead
Big U.S. tech stocks have sold off partly due to sky-high valuations. In Canada, Shopify also has eye-popping multiples - but are other Canadian tech names that have retreated so richly valued? Tim Shufelt will examine the issue. Plus, David Rosenberg returns with some of his latest thoughts on when to know it’s time to jump back into the market.
More Globe Investor coverage
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Compiled by Darcy Keith