My opinion about the news

Since you insist, here is my opinion about the news.

First, sector rotation.

Tech stocks that broke records during the epidemic are relatively neglected in favor of more traditional stocks that awaited the arrival of deconfinement measures.

However, I firmly believe in the wealth generating capacity of tech.

When Sherwin-Williams grows and grows his business, he can only become the biggest seller of paint in the world. Of course, it produces other building materials and a company of this type could go so far as to invest in all branches of construction and DIY ... but that's it.

When Apple creates a smartphone, at the beginning, it is mainly to make calls ... then to access your emails and your agenda ... then to take pictures ... then to spend hours watching videos or playing ... then to have a payment solution… etc. And all the gold mine being in the development of "etc. "

When Booking allows rooms to be reserved anywhere on the planet, it becomes "owner" of a portion of the value of each of the rooms it allows to rent. A very small part, with the rental proceeds mainly going to the owner ... but a very small part of all the rooms he manages to get rented out. Or a colossal wealth.


The second hot topic, of course, is the famous inflation.

Will go up? Will not go up? How far ?

The current recovery of this dreaded monster is due to the exit effects of the pandemic. Companies have had to adapt their premises and their production methods, some distribution channels are disrupted, employees who worked in sectors that have closed for many months have left their posts for another activity, Americans leaving city centers buy a second car ... multiple factors that should subside in the coming months and the (gradual) end of easy money (another pitfall).

But let's not forget that the arc is stretched. In China, the population is aging rapidly. Government measures fail to convince the new generations to have a second or third baby in a country where family solidarity is at its fullest and where very few elderly people benefit from social assistance. The family must keep their savings to help the parents. China loses almost 1% of its working population per year. This population is also getting richer and businesses are finding more and more opportunities in their country.

Therein lies the real but more distant risk of inflation, when the cheap Chinese labor force which has irrigated the world with products at low production costs for 30 years will see its throughput decrease ... or its prices increase.

You can find my reviews on my site, adapera.com.

Wishing you a great day.