I saw this chart from @callum_thomas this weekend which really sums up the change in the economy since the dawn of internet in the 1990’s:
The US Economy used to be all ‘ball bearings’ and steel.
Today it is intangibles.
Here is a definition of an ‘Intangible Asset:
An asset that is not physical in nature. Corporate intellectual property, including items such as patents, trademarks, copyrights and business methodologies, are intangible assets, as are goodwill and brand recognition. Intangible assets exist in opposition to tangible assets which include land, vehicles, equipment, inventory, stocks, bonds and cash.
Building walls won’t fix the economy or protect and prepare us for the intangible economy.
Profiling 400 pound men won’t stop hackers.
Wall Street is woefully behind analyzing the intangible corporation and one of the many reasons that indexing has continued to outgun the hedge funds and active managers.
As robots, machine learning, data and VR take hold of our economy and our decision making, intangibles as a percentage the S&P value should continue to trend higher.